Consumers will benefit from DMCI Power’s supplemental PSA
November 3, 2015
The DMCI Power Corporation disclosed that the supplemental Power Supply Agreement (PSA) it submitted for approval aims to ensure there is more than enough load capacity in case of downtime in any of the other power providers in Palawan.
To achieve this objective, DMCI Power proposed through the supplemental PSA to install additional bunker generating units following Palawan Electric Cooperative (PALECO)’s recommendation to find a more reliable plant technology than diesel.
These units will be at a standby and will be dispatched when the power situation warrants or when downtime emanating from Palawan Power Generator, Inc. (PPGI) and DELTA P occurs. Bunker was DMCI Power’s choice for supplemental purposes because of its stable baseload capacity features.
With the installation of bunker units, DMCI Power will boost its capability of delivering the 25 megawatts dependable capacity it entered into with PALECO. These will serve as interim while awaiting the approval of the proposed coal plant.
This is also a significant move to prepare for the anticipated El Niño next year to avoid frequent brownouts that is bane to residents’ economic activities.
PALECO Board has initially accepted the installation of bunker units because of the expected benefits in terms of plant and power cost efficiency. With the use of bunker fuel, DMCI Power’s services will further improve and the cost of electricity will also be reduced.
The move to supplement the current diesel units with bunker is legitimate under the original PSA which states that the supplier may supplement its generating capacity provided that the guaranteed dependable capacity of the power station after any units is replaced or supplemented will not be less than 25mW.
It also states that the supplemental units should also be firm and capable of being dispatched as part of the guaranteed dependable capacity. The PSA does not specify whether or not subsequent supplemental units should be brand new.
The company stressed that when it delivered the initial 25mW diesel plant (all units are brand new), PALECO issued a Joint Certification which declares that DMCI Power is compliant with the PSA.
DMCI Power is optimistic that it will comply all the conditions of the PSA with the supplemental bunker units firmly in place.