Power sector reform in the Philippines

PGDC TECHNICAL REQUIREMENTS

The Philippines Grid Code came into force in December 2001. Its transmission performance standards that apply to any generator connected to the grid cover power quality, reliability, system loss and safety.

Power quality covers frequency, voltage and transient voltage variations, harmonics, voltage imbalance and flicker. The Code specifies the relevant standards. System loss does not concern the generator but reliability (number and duration of power interruptions) and safety standards are relevant.

The generator must agree to comply with these standards (and demonstrate through specified testing procedures that it can comply) in order to receive a Connection Agreement. It is then required to 'maintain its generating units to fully deliver the [agreed] capabilities'. It must also provide 'accurate and timely planning and operations data to the grid owner and system operator' and must ensure that its units 'will not disconnect from the grid during disturbances except when the frequency or voltage variation would damage the generator's equipment.' The generator must also follow system operator instructions during emergencies.


PSALM is administering NPC's IPP contracts while preparing its generation assets for sale. Its transmission assets have already been handed over to a publicly owned National Transmission Company (Transco). Once the generation assets have been sold off and all IPP contracts renegotiated to reflect market conditions, PSALM will liquidate itself.

It will leave behind - in addition to viable ERC-licensed privately owned generators, distributors and Transco - a strengthened National Electrification Administration (NEA) that supports the development and operation of the country's many distribution grids, whether these are connected to the national grid or not.

These developments impinge directly on on-site power generation in several ways. Most generally and perhaps most significantly, a newly market-oriented, properly regulated power sector will remove the main historic incentives in the Philippines for on-site power, namely expensive and unreliable power supplies from the grid.

... with a new legal framework

Portugal already has a significant cogeneration sector serving mainly industrial sites. Now, with plentiful supplies of natural gas from Algeria and new legislation to encourage the development of cogeneration and renewables, the Portuguese cogeneration industry is predicting that decentralized energy could contribute over 35% of the country's power requirements by 2010. Manuel Freitas Oliveira reports on
current moves.


Portugal's energy system is characterized by a strong dependence on external sources of primary energy, with more than 85% of total consumption reliant on imports, and a very high energy intensity per unit of production - the worst among European Union Member States. Portugal's energy intensity is also increasing, with negative effects on the competitiveness of its economy.

As Figure 1 shows, fossil fuels dominate, although coal and oil are gradually being replaced with natural gas. The continuing dominance of fossil fuels and the low efficiency of the energy system overall are responsible for the increasing emissions of greenhouse gases, mainly carbon dioxide, which could jeopardize national and international environmental commitments such as the National Programme for Climate Change and the Kyoto Protocol.


Figure 1. Primary energy demand. Source: DGE

Continuing economic development, the utilization of new processes and technologies and access by a large part of the population to higher comfort standards are the main reasons for both a national electricity consumption growing at around 4.5% per year, and the increasing energy intensity - see Figure 2. According to this trend, electricity demand may reach 50 TWh by 2010.


Figure 2. Electricity consumption in Portugal. Source: REN

Total annual electricity production is now around 43 TWh and the installed generating capacity is 10.9 GW, with a peak power consumption of 6.7 GW.

On the structure of electricity production, the share of hydro power is important but very variable every year, while decentralized production, through cogeneration systems and from renewable sources, is under consistent development, achieving around 15% of the total.

Portugal is committed to targets of 39% of total electricity consumption to be supplied from renewable energy sources, and 18% from cogeneration by 2010 - Figure 3.

What to Read Next

Ørsted to buy solar and storage developer Coronal

Danish offshore wind giant Ørsted has entered into an agreement to acquire a subsidiary of US-bas...

Climate experts tell UK to set zero carbon target for 2050

Developing carbon capture and storage technology and low-carbon hydrogen is “a necessity not an o...

Energy security: past, present and future

Optimized energy governance is a juggling act between three key dimensions: security, sustainabil...

Power Engineering International

FacebookTwitterLinkedInGoogle+RSS Feed