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’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.