The implementation of interruptible load program (ILP) during power alert levels in the grid is effective but additional investments in power generation are needed to fully resolve reserves issues.
Joe Zaldarriaga, Manila Electric Co. (Meralco) vice president and head of corporate communications, said at the Kapihan sa Manila Bay forum recently that because of ILP, as much as 300 megawatts (MW) of capacity has been de-loaded from the grid last week at the height of yellow and red alerts in the Luzon and Visayas grids.
Under ILP, which has been in effect for 10 years, customers with large electricity consumption are encouraged to run their own generator sets whenever supply of electricity in the grid is short in exchange for monetary incentives.
The fuel they will use in running their own power source are then paid by consumers.
“Their compensation is not to really generate profits for themselves, it is really just to recover the cost of fuel and second, the cost of using their equipment. The program has no other intention but to offer help,” Zaldarriaga said.
Meralco said more participants are being encouraged to join the ILP to increase current availability.
The company said there are 239 service accounts enrolled in the ILP with an equivalent capacity of 530 MW.
But Meralco said additional power plants are the main solution for the power reserves issues recently experienced by the country as ILP is just a “stop- gap measure.”
“Our problem concerns capacity. We need more power plants online, we need more capacity moving forward. We need more energy that we can distribute not just in the Meralco franchise (area) but nationwide. As we add more capacity in the system, we can also able to help the entire economy by preventing situations such as brownouts,” Zaldarriaga said.
Emmanuel Rubio, Aboitiz Power outgoing president and chief executive officer, said the recent power alert levels were aggravated by the effects of El Niño as well as the fact that many power facilities in the country are aging.
“We really need to make sure we are addressing the demand and we have enough reserves in the grid,” Rubio said at Aboitiz Equity Ventures’ stockholders meeting yesterday.
Rubio said for Aboitiz Power, the company has recently synchronized the more than 120 MW Cayanga solar and 76 MW out of over 100 MW in Laoag solar that are both located in Pangasinan.
Rubio said the company is also ready to issue notices to proceed in about 1,000 MW of solar projects that will come in late 2025 and early 2026.
