Generation 

 

   Bicol is well known for its indigenous geothermal resource. Two of the country’s major geothermal fields is the Tiwi and Bacon-Manito geothermal plants which have aggregate reserves of 215 MW and 165 MW, respectively. Both can continue to generate power for approximately 25 more years.  

 

   The region's eleven (11) geothermal power plants and five (5) mini-hydropower plants have installed capacities of 495.5 MW and 5.5 MW, respectively, and a total generating capacity of 499.21 MW. The region's energy demand is low at 140 MW. Despite these however, two concerns have long been raised by the domestic consumers and have emerged as major obstacles to the creation of a favorable investment climate in the region. They are: (a) high power rates and (b) frequent power outages. Big investors are also clamoring for a direct purchase of renewable power directly from the power supplier.

 

   The capacity additions for Marinawa DPP and the installation of PB 109 realized in December 2005 brought about a 10.28 percent increase in total capacity for the small island grid. But the cost of power in the region is still high. The National Power Corporation (NPC) sells power at a uniform rate of P4.91/KwH (as of December 2006) for the Luzon grid. However, the average power cost per electric cooperative (EC) still varies. For mainland ECs connected to the Luzon Grid, the average power rate ranges from P9.65/KwH (CASURECO III) to P7.87/KwH (ALECO). For the island provinces, power rates range from P8.40/KwH to P7.88/KwH. The average power rate for Region 5 is P8.54/KwH, the highest nationwide. The national average rate is P6.61/KwH.

 

   Even with the vast geothermal resources, the geothermal power generating plants in the region date back to the 70s and early 90s. These plants were not able to achieve its maximum generation capacity. Bacman I, BacMan II-Cawayan (since August 2005) and Unit 4 of Bacman II-Botong (since August 2006) have been shut down. Other BacMan plants did not generate energy due to shutdown and repair. Major damages were incurred by the plants due to the super typhoons which hit the region in the late part of 2006.

 

   Tiwi Geothermal Power Plant (TGPP) has generated a total gross energy of 127,552.80 MWh. This status of generation is with the current preservation of Unit 3, thus generating no energy, and the non-functioning of Unit 6. Ongoing rehabilitation of the generating units of Tiwi plants is pursued for the plant to restore the original generating capacity or output. Like the Bacman plants, major damages were also sustained by TGPP due to typhoons Reming and Milenyo.

 

   Responding to the call to optimize the use of alternative fuel, on May 6, 2007, the Biodiesel Act was implemented. One percent of biodiesel, specifically from coconut is added to diesel fuel. There are however issues which were raised in connection with the implementation of the Bio-diesel Act. These are (1) is the blend indeed safe to the environment; (2) on the would-be performance of the vehicles, will car engines not break down; and (3) price increase.

 

   Transmission

 

   The National Transmission Corporation (TransCo) is tasked to provide efficient and reliable transmission of electricity across the region. It undertakes various activities such as construction and maintenance of transmission facilities, grid interconnection and power dispatch. Since 2005, TransCo has been maintaining the mainline, transmission lines and load end substation and facilities for Albay and Camarines Sur substations. District III managed about 1,270 circuit-kilometers of transmission lines, 401.21 of which is for the 350 kV and 869.13 is for 230 kV. Transco also administered 1,108.75 megavolt-amperes (MVA) of substation capacity located at Albay, Sorsogon, Camarines Sur and Camarines Norte.

 

   In 2006, Transco’s biggest challenge was how to restore as quickly as possible normal operations following three super typhoons in the last quarter, which left about 160 of its steel towers down. Full restoration works did not cease until all transmission operations in affected areas were re-energized, particularly in the provinces of Albay, Camarines Sur and Sorsogon. Emergency Restoration System (ERS) lightweight mini-towers were used as temporary replacements. However, Transco efforts of restoration were disrupted by loss of transmission line materials. Transco has appealed to local government and barangay officials to help hasten restoration of electricity by protecting fallen transmission line cables, tower parts and other materials from looters.

 

   On May 2, 2007, six Transco towers along the Naga-Tayabas line collapsed, plunging some parts of the region into darkness for almost two weeks. The collapse of the towers was still attributed to the super typhoons which hit the region in the late part of last year.

    Distribution 

   A total of 4 barangays were energized in 2006, bringing to 81 the total number of energized barangays, which is 28 percent of the Plan target. This reflects 93.93 percent of the 3,410 total potential targets. Translated into household connections, 22,384 additional consumers were served, which brings energization to 656,014 of the total number of consumer connections served, reflecting 66.56 percent of the potential connection target of 985,600.

 

   Among the provinces, Masbate is the least energized at 62.45 percent. The province is expected to be 100 percent energized by 2008 with the signing of the 22.5 million French Financial Protocol in November 2004 between France and the Philippine Government. Two French firms, namely: Paris-Manila Technology Corporation (PAMATEC) and ETDE of Bouygues Construction will be responsible for the implementation of the electrification project. The contract stipulates the energization of about 128 barangays by year 2008 and 90 percent household connection by 2017. Likewise, with the inclusion of Masbate as one of the recipient provinces in the Philippine Rural Electrification Service (PRES) Project, line extension program in the region will further be accelerated.

 

   Power consumers in the Bicol region continue to suffer the effects of inefficient operations of the electric cooperatives which results to high cost of power. EC inefficiency can be attributed to high overhead expenses, power pilferages, defective distribution lines and high systems loss. On systems loss, efforts in the reduction of the average systems loss level were not enough to attain the targeted 15 percent by 2005. In fact, an increase in the systems loss (19.59 percent) was posted by end of 2005. This, however lowered to 18.53 percent in 2006. Several factors affected the systems loss performance, among these are: ECs’ non-full compliance with systems loss segregation requirements; increase in power pilferages due to high power rates; and low supply voltage in some ECs. Of the eleven (11) electric cooperatives in the region, TISELCO registered the highest systems loss level at 29.19 percent. Only CANORECO and SORECO I obtained a systems loss level that is within the allowable 14 percent cap.

 

   It may be noted that among the Bicol ECs, ALECO is on the watchlist of NEA. The issue of unpaid power arrearages of ALECO with the NPC, as well as its high systems loss of  23.31 percent, remain unresolved.

 

Objectives

   Generation 

   The objective of the generation sub-sector is to attain energy independence through resource development and to provide reasonable power costs and better services to the end-users.

   Transmission

   The objective of the transmission sub-sector is to provide reasonable power supply, cost and better services to the end-users.

    Distribution

   One of the basic challenges of the distribution sub-sector is the provision of electricity up to the barangay level to cover the remaining barangays in order to achieve 100 percent energization in the region and to enhance the operation and efficiency of the electric cooperatives.

Strategies

 

   The following are the strategies of the different power sub-sectors:

   Generation 

1. Rehabilitate existing geothermal power plants.

2. Aggressively develop renewable energy potential such as biomass, solar, wind, ocean resources and mini-hydro resources.

3. Prioritize the implementation of critical and strategic infrastructure which address energy generation for sufficient power supply.

4. Increase geothermal exploration and production activities.

5. Pursue renewable energy development such as jatropha.

6. Increase and encourage the use of alternative fuel.

   Transmission 

1. Make available sufficient quantity of power from the main grid.

2. Reliability of supply at the distribution level.

3. Ensure efficient transmission of electricity.

4. Continuously implement transmission system upgrade and expansion program.

Distribution

1. To improve/rehabilitate electric cooperative.

2. Institutionalize franchise tax, distribution and real state tax.

3. Total barangay electrification by 2008.

4. Reduce power rate.

5. Rehabilitate existing power geothermal sources and equipment.

Major Programs and Projects

   Generation  

1. Sibulan River Mini-Hydro Power Plant

2. Rangas River Mini-Hydro Power Plant

3. Osiao River Mini Hydro Power Plant

4. Cawayan II Mini Hydro Power Plant

5. Kapipihan MHP

6. Dugui MHP

7. Colasi MHP

8. Hitoma MHP

9. RGV-2000 M, a 2.5 MW gas station using coconut husks (Biomass)

10. Development and Implementation of 4.6 MW generating unit from rice hull (Biomass)

11. 5MW wind energy resource

12. NPC to maintain 2MW Mobile Generation or Equivalent Power source at the Tiwi Geothermal Plant

13. Rehabilitation of the Tiwi and Bacman Geothermal Power Plants

   Transmission 

1. Naga CFTPP 1200 associated Project

2. Naga CFTPP-1200 MW associated Project

3. New T iwi 230 kV S/S

4. Luzon-Catanduanes Interconnection Project

5. Islanding operations for Bicol

6. Bicol Power Restoration and Outage Prevention Project (BPROPP)

7. Clearing of right of way along distribution lines

8. Rehabilitation/upgrading of power lines and accessories damaged by typhoon “Reming”

9. Construction of typhoon resistant transmission and distribution lines in Bicol Region

   Distribution

1. Barangay Electrification Program

2. Strengthen anti-pilferage campaign

3. System loss reduction to 14 percent

4. Construction of typhoon-resistant distribution lines

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