POWER supply within the Visayan Electric Co. Inc’s. (Veco) franchise areas will not be affected by the dry spell, a top official from Veco said.
Chief operating officer Anton Mari Perdices said Veco has a stable supply of power to meet the expected surge in power demand this summer.
“We expect (the demand) to go higher as the weather gets hotter. On the supply standpoint, we are stable because we don’t rely on hydro,” he said.
Veco used up 550 megawatts (MW) in April.
Veco also welcomed the entry of Therma Visayas Inc. (TVI) as one of its power sources.
Perdices said this will give a power supply boost for Veco, as it addresses the power requirement of its franchise area.
TVI is a subsidiary of AboitizPower.
Veco entered into a 15-year contract with TVI for 150 MW power supply.
The second 170-MW unit of TVI’s baseload plant in Toledo City is expected to come online in May 2019, following the launch of the power plant’s first 170-MW unit on April 6.
Perdices said this would secure the long-term power supply and improve the reliability of its network.
He said TVI’s entry is good timing, with the fluctuating prices in the Wholesale Electricity Spot Market.
Some power plants in Luzon were affected by the recent earthquake while several power plants are still down for maintenance. Yellow and red alerts issued by the National Grid Corp. of the Philippines caused spikes in prices, especially in the spot market.
Perdices explained that with unstable and high prices of power in the spot market, electricity rates also fluctuate.
“We would rather sign a long-term contract for stability and predictability,” he said.
Meanwhile, rehabilitation of the 153.1-MW Naga Power Plant Complex in the City of Naga is still ongoing.
Therma Power Visayas Inc., which owns and manages the plant complex, targets to rehabilitate six bunker diesel power units within the facility and expects to complete the overhaul by the latter part of 2020.
Moreover, Perdices also said that they are planning to set up more substations within its franchise area to serve Cebu’s growing electricity needs.
On average, he said Veco builds two substations per year.
Veco, at present, has 20 substations spread across its franchise area.
The power firm, however, is facing a land acquisition problem to facilitate its expansion. An ideal substation would require about 2,000 to 2,500 square meters. (KOC)