Increased Power Generating Capacities in the Visayas a Good Signal for Investors

In just a year, the registered capacities of power generating units in the Visayas grid increased  by 29 percent which indicates a “good signal” for investors to come in with an assurance of adequate power supply.

Philippine Electricity Market Corporation (PEMC) president Melinda Ocampo said the Wholesale Electricity Spot Market (WESM) reflected a considerable growth in the registered capacities of generating units in the Visayas grid from 2,213.11 megawatts on July 31, 2015 to 2,854.2 megawatts as of July 31, this year.

“The increase is a good signal for investors to come in” and put their money in the Visayas where ample supply of power is adequate to meet the requirements of the business industry, said Ocampo during a recent press conference in Cebu.

The WESM record showed the rise in registered capacities is due to the influx of emerging renewable energy resources (RE) such as solar, wind and biomass generating facilities.

Among the RE facilities being established in the Visayas included the 30 megawatts solar-power farm in Toledo City in Cebu and other solar farms in Negros Occidental and the cities of Tacloban and Ormoc in Leyte.

According to the PEMC, the entry of a coal power plant in Iloilo City, this year also contributed to the supply in the Panay Island.

As of June 2016, coal power source still tops the electricity market at 46.70 percent followed by natural gas at 28.60 percent and geothermal at 11.92 percent, claimed PEMC Vice President for Corporate Planning and Communications Robinson Descanzo   although more and more RE facilities are now being established towards the direction of clean energy.

The PMEC data further showed that customers in the Visayas sourced about 17 percent of their energy requirements from the WESM and 83 percent were obtained through power supply agreements during the first semester this year.

“We see the WESM’s role in the increased supply in the Visayas grid as the resulting market prices provide signals for investors on pricing of electricity taking into account transmission network constraints,” said Ocampo.

The PMEC is the governance arm of the WESM which started its operations in Luzon and the Visayas in December 2010.

The WESM is a centralized venue for buyers and sellers to trade electricity as a commodity where its prices are based on actual use (demand) and availability (supply). (fcr/PIA7)