SBMA reaps ₱2.96-M savings from SPS project in 2023

The Subic Bay Metropolitan Authority (SBMA) reaped ₱2.96-million savings from using solar power energy from January to December of 2023.

SBMA Chairman and Administrator Eduardo Jose L. Aliño attributes these savings to the solar power system (SPS) project that the agency has undertaken as early as 2017.

“We are grateful that this renewable energy project saves a lot for the agency. With this, the agency could now just focus on important financial obligations,” he said.

Aliño added that the SBMA is currently reaping benefits from the solar power system projects in six areas, namely: Malawaan Park, Bldg. 229, Bldg. 255, Bldg. 662, Regulatory Bldg., and the Remy Field.

“Especially now that the weather is scorching hot, we need to protect our employees from heat stroke, and it will not cost us a single centavo because we are now harvesting from these solar power system,” Aliño added.

According to Engr. Eddie Ventura, SBMA Telecommunications Department officer-in-charge, this project was established in compliance with Republic Act 9513 or the Renewable Energy Act of 2008, an act promoting the development, utilization and commercialization of renewable energy resources and for other purposes.

Ventura shared that for Remy Field, which started only in March 2023, and consumed 76,663 KWh at 9.3882/KWh, the SBMA saved ₱719,727.58. Also, in Bldg. 255, which consumed 70,475.55 KWh from January to October 2, savings amounted to ₱661,638.56. However, the system was temporarily shut down to give way for the building’s roofing rehabilitation project.

For the Regulatory Bldg., a savings of ₱652,386.02 was reaped from the 69,490KWh consumption; while the 52,434.43KWh consumption at the Bldg. 662 translates to ₱492,264.92 savings. Also, ₱439,680.76 was also saved from 46,833.34KWh consumption at the administration building.

Ventura recalled that the SPS project started in 2017 as a result of an external seminar on SPS conducted by Institute of Electronics Engineers of the Philippines (IECEP)-Zambales Chapter that electronics engineers attended.

Then Telecommunications Department manager, the late Engr. Joey A. Lacanlale, assigned Engr. Jefferson B. Llantada of the department’s Projects and Technical Services Division (PTSD) to do a research and use solar powered lightings in Malawaan Park.

Later on, an experimental 10-Kw Grid Tied SPS at Regulatory Building was done in 2018 and was successful. Hence, the department pursued more SPS projects spearheaded by Engr. Antonio G. Rafanan.

Ventura added that the solar power system project was implemented, primarily, to save on power consumption expenses and sell its excess energy to the Electric Cooperative; to comply with the green initiative, which is an effort to reduce pollution and waste, conserve resources and maintain 

an ecological balance, and the Power Savings Program; and also to promote sustainable development.

Meanwhile, Rafanan explained that with the SPS project, the agency not only reduced the use of non-renewable resources of energy, it is also started selling unused harvested power back to the grid in 2022.

He said that the Grid-Tied and Hybrid systems were also configured and applied to use net-metering, which is another source of savings for the agency aside from consuming harvested solar power.

The SPS project cost amounted to ₱22,643,760.83 in total. This includes ₱400,892.86 Off-Grid system in Malawaan Park, which started in 2017; ₱3,493,000 Grid-Tied in Regulatory Building, which started in 2018 at 10KW, then upgraded to 50KW in March 2022; ₱6,854,000 Grid-Tied in Bldg. 229 and Bldg. 255, as well as ₱3,095,000 Grid-Tied in Bldg. 662, all of which started in March 2022; and ₱8,800,867.97 Hybrid system in Remy Field, which started only in March 2023. (MPD-SBMA)

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One Subic Power signs P750-M 10-year lease extension

A lease extension agreement of ten years translating to P750 million in lease and revenue shares was recently approved by the Subic Bay Metropolitan Authority (SBMA) for One Subic Power Generation Corp., which operates the 116-megawatt diesel generator plant here.

The power firm, which is a fully-owned subsidiary of PHINMA Energy Corp., initially committed $3.2 million-worth of investments and five per cent variable gross revenue shares (GRS) when it took over the diesel plant in 2011.

The firm’s original contract was effective until 2020, but the amended agreement granted the firm a ten-year extension of its operations until 2030.

SBMA Chairman and Administrator Wilma T. Eisma signed the new contract with PHINMA President and CEO Francisco Viray, and One Subic Power President Rizalino Santos.

During the signing, Eisma thanked the company for being a valued partner of the SBMA and for sharing the commitment for a better Subic community.

“I do appreciate the malasakit that you put in in your business here in Subic and the way you take care of your people. That kind of behavior is important for the future of Subic because your people are also my people,” Eisma told the company officials.

According to the SBMA Business and Investment Department (BID), One Subic Power Generation Corp. is one of the biggest revenue sources for the SBMA, having turned in a total of $7.2 million in fixed lease rate, P81 million in gross revenue shares, and P4.4 million in common user service area (CUSA) fees since it started operations in 2011 until 2017.

Meanwhile, the ten-year extension of the firm’s contract would also provide an additional five per cent increase in current lease rate for the first five years, and another five per cent increase for the remaining five years, for a total of P630 million in lease rates alone.

In addition, the company’s annual gross revenue share (GRS) of P12 million would translate to a total of P120 million over the 10-year extension period, an amount that will be part of the revenue shares given out by the SBMA to neighboring local government units. (RFD/MPD-SBMA)

PHOTO:

[2] SBMA Chairman and Administrator Wilma T. Eisma and PHINMA Energy President and CEO Francisco Viray conclude a new 10-year lease contract for the power firm, with One Subic Power President Rizalino Santos (left) and SBMA Business and Investment manager Kenneth Rementilla (right). (AMD/MPD-SBMA)

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Subic firm allows solar users to sell excess power

A solar power company located in this free port is now providing the means for power consumers to produce their own electric power supply and sell the excess power generated from their solar panels.

Bandacorp Solar Inc. (Bandasolar) officials said with the net-metering program already in effect, residents of Olongapo City would be able to install an on-site Renewable Energy (RE) facility, produce power for their own consumption, and even sell their excess electricity to distribution utilities.

The firm, which provides environment-friendly solar panels and cost-efficient light-emitting diode (LED) lamps to cut down power bills by up to 50 percent, banks on the net-metering program to draw this advantage.

Net-metering allows power users to install wind or solar power stations not exceeding 100 kilowatts (kW) in capacity for their own use. The electricity that was not consumed is automatically fed to the Olongapo Electricity Distribution Company (OEDC) system where they are paid as “generation cost.”

The OEDC computes the amount of excess power fed to system and then deducts the total from the consumer’s next electricity bill, thus lowering the cost.

Subic Bay Metropolitan Authority (SBMA) Administrator Wilma Eisma lauded the Subic company for its support in the government’s renewable energy program and for encouraging local households and businesses to play an active role in alternative energy production.

“This is what Subic is all about—innovation and public service,” Eisma said. “Bandasolar not only helps power consumers minimize the use of expensive conventional power energy fuels, and thus save on their power bills, it also helps protect the environment and preserve natural energy sources,” she added.

Bandasolar is accredited by the Department of Energy to design and supply equipment for solar-powered systems for commercial, government, industrial and residential customers. The firm is offering free consultation at their showroom-office along Sampson Road in the Subic Bay Freeport for those who wish to know more about solar-power generation.

Bandasolar also offers a line of energy-saving devices ranging from air-conditioning system to solar street lights, solar water heater, and even home and industrial solar-lighting solutions.

Among the companies in Subic Freeport that already use solar power or LED lamps are Ocean Adventure marine theme park; gastight plastic storage manufacturer GrainPro; packaging manufacturer PACTEC; the testing and certification firm SGS; and ink solution provider Printing Images CtC, Inc.

Bandasolar has also installed solar facilities for some residences at the Kalayaan and Binictican housing areas in the Subic Bay Freeport, and undertaken similar projects in Zambales, Pampanga, Batangas, and Ilocos Sur under the net-metering scheme.

Already implemented in some countries around the world, the net metering scheme in the Philippines is governed by Republic Act 9513, otherwise known as the Renewable Energy Act of 2008, and implemented through the Energy Regulatory Commission (ERC) in consultation with the National Renewable Energy Board (NREB). (RAV/MPD-SBMA)

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SBMA okays US$798-M solar farm and industrial city project

More manufacturing companies and light to heavy industries are expected to locate in this premier Freeport, as the Subic Bay Metropolitan Authority (SBMA) approved the development of a 982-hectare industrial estate at Subic’s Redondo Peninsula.

SBMA Chairman Martin B. Diño and SBMA Administrator Wilma T. Eisma announced the approval of the US$798-milion project proposed by Dynamic Konstruct International ECO Builders Corp. (DKIEBC), a duly-registered enterprise inside the Subic Bay Freeport Zone.

The proposed project site for the solar farm and industrial city at the Redondo Peninsula

“This project is our answer to the inquiry of investors looking for thousands of hectares of flat land for manufacturing and light to heavy industries inside the Subic Bay Freeport Zone,” Chairman Diño said during the State of the Freeport Address (SOFA) hosted by the Subic Bay Freeport Chamber of Commerce (SBFCC) last Monday.

He added that the SBMA has been conferring with nearby local government units to identify more areas suitable for the development of industrial estates that will be under the Subic Bay Freeport’s tax- and duty-free regime.

Administrator Eisma meanwhile pointed out that the proposed solar farm and industrial city, when fully realized, will generate about 50,000 new jobs.

“When the Subic Naval Base closed down in 1992, we were all so depressed to be losing the 35,000 jobs generated by the US Navy. But under the SBMA we have long surpassed those numbers— as of February 2017 our active workforce within the Freeport is 115,272—and we keep on working to bring about more employment,” she added.

The SBMA officials also clarified that out of the $798-million investment commitment, the DKIEBC will spend about $300 million for the proposed 402-hectare solar farm, which is designed to produce 200 megawatts of green energy to primarily supply the proposed 580-hectare industrial city.

The industrial city project will include commercial buildings, factories, warehouses, utilities for water and electricity, fire and law enforcement facilities, and sanitation and landfill facilities.

According to DKIEBC, the solar farm shall primarily benefit the investors and locators of the industrial city with green and low-cost energy supply and reduce the risk of exposure from the spot market. (NBM/MPD-SBMA)

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Meralco names builder of Subic plant

Manila Electric Co. (Meralco) said Redondo Peninsula Energy Inc. (RP Energy) consortium has signed a construction contract with Azul Torre Construction Inc. and a supply contract with Doosan Heavy Industries & Construction Co. Ltd. for the construction of the 600 megawatts (MW) coal-fired power plant it is developing in Subic.

RP Energy which is currently composed of Therma Power, Inc., a subsidiary of Aboitiz Power Corp. and Taiwan Cogeneration International Corp. each owns 25 percent equity interest while Meralco PowerGen Corp. (MGen), a subsidiary of Meralco holds 47 percent equity interest in the plant projected to go online by mid-2020.

Construction of the Subic coal plant estimated to cost $1.2 billion was halted when a Writ of Kalikasan was filed against it in 2012 but which was later junked by the Supreme Court (SC) for insufficiency of evidence.

Meralco also recently filed a power supply agreement application with the Energy Regulatory Commission to draw 225 MW from RP Energy once it is completed but is still pending for a decision.

Aside from RP Energy, other coal plant developments where MGen is involved in include the 455 MW San Buenaventura project and the 1,200 MW Atimonan both located in the Quezon province. (Malaya Business Insight)

PHOTO:
Artist's rendition of the power plant located at the REdondo Peninsula. RP Energy is building a $1.2Bn 600MW power plant within the Subic Bay Freeport Zone (SBFZ) using circulating-fluidized-bed technology.

http://www.malaya.com.ph/business-news/business/meralco-names-builder-subic-plant

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BoI approves Subic power plant

Redondo Peninsula Energy Inc., led by Meralco PowerGen Corp., received a certificate of registration from the Board of Investments for its 600-megawatt coal-fired power plant in Subic, Zambales costing P63 billion.

“The registration entitles RPE to duty-free importation of equipment, materials and spares used for the power plant for a period of five years from date of registration. Also income tax holiday for four years from commercial operation,” RP Energy project development manager Joselito Lantin said Friday.

Lantin said RP Energy would build the project in phases. The company is currently negotiating for the engineering, procurement and construction contract covering the first 300-MW phase of the project.

He said the EPC contract would include an option for a second 300-MW unit.

“Targeted to start construction for phase one is fourth quarter 2016. Expected commercial operation is late 2019/early 2020,” Lantin said in a recent briefing.

Electricity generated by the project is covered under a separate power supply agreement with Manila Electric Co. accounting for 225 MW and Aboitiz Energy Solutions contracting 75 MW.

The company signed an amendment to the power plant site lease and transmission line right-of-way lease agreements with the Subic Bay Metropolitan Authority in February.

“We will do 300 MW and then [expand to] 600 MW, depending on our capability to interconnect with NGCP [National Grid Corporation of the Philippines]. It just takes a few months before you can start the phase two,” Meralco PowerGen chairman Manuel Pangilinan said earlier.

Meralco PowerGen is the power generation arm of Meralco, the country’s biggest power distributor, and owns a majority stake in RP Energy. (Alena Mae S. Flores, Manila Standard)

Full story: http://thestandard.com.ph/business/211878/boi-approves-subic-coal-plant.html

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Aetas, SBMA ratify green energy project

The Aetas of Pastolan in Subic Bay Freeport has ratified the expansion of  wind and solar energy projects in its ancestral land as part of their commitment to sustainable development.

The Subic Bay Metropolitan Authority (SBMA), through Emerging Power Inc. (EPI), a renewable energy (RE) firm, will allocate US$200M to its renewable energy project which will cover 800 hectares of Mount Santa Rita, a Pastolan ancestral land, in observance of a Joint Management Agreement (JMA).

SBMA Chairman Roberto Garcia signed on October, 2013 a joint management agreement covering partsof the Ayta ancestral domain in the Subic Bay Freeport with Pastolan Ayta chieftain Conrado Frenilla (right)and NCIP Region 3 director Ronaldo Daquioag. (AMD/MPD-SBMA)

“We are proud that the Pastolan Aetas have been very supportive in this milestone. This partnership is a witness that preservation of heritage and sustainable development can work together without being compromised,” SBMA Chairman Roberto V. Garcia said.

“We are helping each other by moving forward with our plans for the preservation of our future generation,” Garcia added.

The JMA was signed and witnessed on October 10, 2013 by SBMA, The Aetas, and National Commission on Indigenous Peoples (NCIP). The said project will generate a total of 150-megawatts of RE.

The agreement was forged to protect and preserve the rights of the Aetas along with the implementation of socio-economic and cultural development programs by SBMA.

The groundbreaking of wind and solar power farm, which happened on October 2015, was the first wave of its expansion.

Chairman Garcia assures that the Pastolan Aetas will benefit from this expansion, same with the turnover of P14.8M cheque to the Aetas as payment for lease rentals by the locators within the ancestral domain.

“We are giving a priority job hiring to the Aetas for the construction of more solar and wind power plants. The welfare of our brothers and country will always be important to us,” Garcia said.

The expansion is a collaborative action of SBMA and Indigenous Peoples to uphold RA 9513 or the Renewable Energy Act in 2008 to invest on RE projects. This also serves as their support in the global commitment of Philippines to reduce greenhouse gas emission at the 2015 Paris Climate Conference (COP21).

“As the first military base to be successfully converted into a Freeport zone, we are reaching greater heights by playing a vital role in the preservation of both cultural heritage and environment with the installation of a major clean energy project in partnership with Indigenous Peoples,” Garcia said.

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Emerging Power to upgrade Subic project

Renewable Energy (RE) company Emerging Power Inc. (EPI) is partnering with California-based tech firm Amber Kinetics for the Flywheel Battery Storage Technology in the 150 Megawatt (MW) solar and wind power project in the Subic Bay.

“Amber Kinetics’ technology will be very useful in smoothing out the energy generation of our Solar and Wind farm by taking out the variability. We are very excited to work with Amber and hopeful that this milestone deal will be replicated in future renewable energy projects in the country,” EPI Head of Marketing Alberto Guanzon said.

EPI is looking at acquiring 10-MW worth of Multi-hour Flywheel Battery Systems from Amber Kinetics for the Subic project. The company will be the first to use the technology for a utility scale power plant in the Philippines.

Flywheel energy storage works by rotating steel rotors at very high speeds, allowing the system to store energy. In effect the flywheel is a reservoir for kinetic energy which can be drawn out at any time.

Aside from dealing with the variability of solar and wind energy, Amber Kinetics’ state of the art flywheels will also provide multi-hour flexible capacity to the transmission.

Amber Kinetics’ technology has demonstrated the ability to store and release electricity for hours. It also offers unlimited cycling for a 30-year lifespan with no degradation. These attributes make it ideal for integrating utility scale renewable energy and transmission.

“We are thrilled to be partnering with Emerging Power to integrate energy storage into the 150MW solar and wind farm in Subic Bay. We believe that our multi-hour flywheels are an ideal technology solution to help EPI smooth the variability of solar and wind generation into the transmission system. The EPI team is incredibly forward thinking and we are excited to be working together,” Amber Kinetics CEO Edward Chiao said.

EPI is majority owned by Nickel Asia Corporation, one of the country’s biggest mining firms. The miner has guaranteed up to P3 billion the loan facility of EPI over three years to finance the RE projects all over the country. (Voltaire Palaña, Manila Times)

PHOTO: Image c/o EPI

http://www.manilatimes.net/emerging-power-to-upgrade-subic-project/250791/

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Redondo Peninsula to stagger construction of Subic power plant

MANILA, Philippines – Redondo Peninsula Energy Inc. (RP Energy) will phase the construction of its 600-megawatt (MW) coal-fired power plant in Subic pending the resolution of its transmission problems.

RP Energy is a consortium composed of Meralco Power Gen (MGen), Aboitiz Power Corp. and Taiwan Cogeneration International Corp.

The consortium has been evaluating whether to push through with the whole 600 MW in one go or to phase it due to issues in the capacity transmission facilities.

When asked for updates on the project, Meralco chairman Manuel V. Pangilinan said “the latest word is that we might phase it.”

“(We will start with) 300-MW first and then (another 300 MW) to 600-MW, depending on our capability to interconnect with NGCP (National Grid Corp. of the Philippines). If that takes a few months, then it’s just a few months before we can start the Phase 2,” Pangilinan said.

Construction of the 600-MW coal-fired power plant is targeted in the first quarter of this year and completion in the second half of 2019. (Danessa Rivera, The Philippine Star)

http://www.philstar.com/business/2016/03/03/1558805/redondo-peninsula-stagger-construction-subic-power-plant

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UK-based company tapped for solar farm project in Subic Bay

A UNITED Kingdom-based solar energy company has been tapped as the engineering, procurement and management (EPM) provider for a 100-megawatt solar farm project in Subic Bay.

With the project, Proinso, a global leader in the photovoltaic industry, is looking to further increase its presence in the Asian market.

“The Subic Bay engagement is a complex project demanding a high level of capability support across many disciplines provided via our EPM program. Our EPM model is based on a collaborative approach working with local partners. This way, Proinso is able to deliver world class renewable assets and also invest in the development of a strong local industry,” Stuart Macfarlane, Proinso regional head for Asia Pacific, said in a statement yesterday.

Proinso is partnering with local firm Asiacrest Marketing Corp. for the Subic solar farm project, which is touted as the biggest of its kind in Southeast Asia.

Asiacrest Marketing President and CEO Lawrence Plata said the company will be Proinso’s exclusive distributor and country representative for the Philippine market.

“We are tapping experts from the UK, Spain and Australia to design and execute the project. These experts will also engage in a knowledge transfer program to develop the skills of our young and dynamic team of local engineers. We have more solar projects in the pipeline which we hope will help to speed up economic and social development,” Mr. Plata said in the same statement.

UK Trade and Investment (UKTI) in Manila had worked closely with Proinso for its entry into the Philippine market.

UKTI International Trade Adviser David Taylor said the Subic Bay project is one of the biggest by a UK company in the Philippines this year.

“The UK is committed to action on climate change and Proinso is a great example of our business expertise in renewable energy and low carbon initiatives. A project of this scale will utilize the abundance of solar energy in the Philippines and help the country develop a cleaner energy mix,” British Ambassador to the Philippines Asif Ahmad said.

Proinso has extensive experience in systems integration in grid-tied, off-grid, storage and diesel hybrid solutions across residential, commercial, industrial and utility applications.

The solar energy company said international markets account for 88% of its sales. It currently has offices in Spain, Germany, Greece, Italy, USA, UK, Canada, China, Brazil, Australia, Japan, South Africa, Mexico and India. (CRAG, BusinessWorld)

http://www.bworldonline.com/content.php?section=Corporate&title=uk-based-company-tapped-for-solar-farm-project-in-subic-bay-&id=117583

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Subic hosts largest solar power project in Southeast Asia

This premier free port is expecting to be in the forefront of sustainable development as it eyes the installation here of a $200-million combined solar and wind farm that would generate a total of 150 megawatts of renewable energy.

“This is another pioneering role on the part of the Subic Bay Freeport, which is the first military base to be successfully converted into a free port zone,” Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia said in a media briefing on Monday.

“​It will also​ be one of the first major clean energy projects in the country and the biggest solar installation in the whole Southeast Asia, and it is a big honor for Subic to be the project site,” Garcia noted​.

“This is very significant since the whole world is looking at renewable energy nowadays,” he added.

The $200-million alternative energy project will be undertaken by Emerging Power, Inc. (EPI), a renewable energy firm that has put up a 40-megawatt geothermal power plant in Mindoro last year.
EPI is controlled by Nickel Asia Corporation (NAC), one of the country’s biggest mining firms in the country.

The clean energy project will be located in an 800-hectare project site on Mount Santa Rita here, which is covered by the Pastolan Ayta tribe’s ancestral domain.

Garcia said the company hopes to have the Subic solar and wind power project on stream by next year.

He said the project is in line with RA 9513, or the Renewable Energy Act of 2008, which aims to accelerate the exploration and development of renewable energy resources, increase utilization of such and promote their efficient and cost-effective commercial application. The law was also designed to effectively prevent or reduce harmful emissions to protect public health and the environment.

The development and promotion of renewable energy has been set as among the priority projects of the national government under the Investment Priorities Plan of 2012, Garcia added.

Garcia said the EPI project will be a pioneering venture for the establishment of renewable energy facilities in the Subic Bay Freeport Zone.

“This is a big stride towards sustainable development,” Garcia added. “It will help us keep Subic green and make the Freeport grow further.” (HEE/MPD-SBMA)

PHOTO:

SBMA Chairman and Administrator Roberto V. Garcia (4th from left) and Emerging Power Inc. President Martin Antonio Zamora (3rd from left) lead the groundbreaking ceremony for the 150-megawatt solar and wind power project in the Subic Bay Freeport zone. (AED/MPD-SBMA)

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EPI to build multibillion wind, solar projects in Subic

EMERGING Power, Inc. (EPI), a renewable energy company, will be putting up multibillion-peso wind and solar power projects at the Subic Bay Freeport Zone in line with its expansion from geothermal to solar and wind power.

The Subic Bay Metropolitan Authority (SBMA) has approved the entry of EPI into local company Jobin-SQM Inc. (JSI) via the acquisition of a 90 percent stake in the latter, SBMA acting deputy administrator Ronnie R. Yambao said.

The SBMA is the operating and implementing arm of the government for the development of a 670 square kilometer area of Subic Bay Freeport (SBF) into a self-sustaining tourism, industrial, commercial, financial, and investment center to generate employment opportunities.

In 2014, JSI president Nancy Tan signed a 50-year lease agreement with SBMA chairman Roberto Garcia for the development of a wind and solar project on an 800-hectare property on Mt. Sta. Rita, about 8 kilometers away from Olongapo City.

JSI has energy service contracts for 100 megawatts (MW) of solar power and 50 MW of wind power granted by the Department of Energy (DOE).

The Mt. Sta. Rita solar project, worth $200 million, is expected to be operational by June 2016 and is seen to reduce coal consumption by 44,300 tons per year.

A feasibility report by JSI released in March 2015 showed that the site is a suitable location for a solar energy facility that can produce up to 100 MW of power.

The report cited “convenient traffic, superior geographic position and rich solar energy resources” as factors proving the viability of the project.

It said the project meets the increasing demand for energy of the emerging Freeport Zone, while also speeding up the area’s economic and social development.

EPI chairman Antonio Martin Zamora said the project will pave the way for bringing clean and renewable power to SBMA.

“What better way to spark progress and growth to the people of Subic and investors in the country’s first freeport than by making clean and stable power available to them?” said Zamora.

Nickel Asia Corporation (NAC), one of the country’s biggest mining firms, holds a majority share in EPI.

NAC has said in a recent disclosure that it will guarantee the loan facility of EPI for up to P3 billion over a three-year period to finance EPI’s renewable energy projects.

NAC said it has earmarked $60 million for the purchase of JSI and Phase 1 of the project, which will initially be able to generate up to 25 MW of solar power.

EPI is also putting up a 40-MW geothermal power company in Oriental Mindoro, a 10-MW solar project in Camarines Sur, a 2.5-MW biogas project in Quezon; and a 10-MW solar and bunker hybrid project in Northern Palawan. (Ritchie A. Horario, Manila Times)

http://www.manilatimes.net/epi-to-build-multibillion-wind-solar-projects-in-subic/209576/

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RP Energy cuts Subic power plant capacity target to 300 MW

THE Redondo Peninsula (RP) Energy Inc. is lowering by half the target capacity of its newest coal-fired power plant at the Subic Bay Freeport Zone in Zambales.

The consortium is set to change the project parameters to reduce the capacity from 600 megawatts (MW) to 300 MW, Meralco Chairman Manuel V. Pangilinan said.

RP Energy is a joint venture of Meralco PowerGen Corp., Aboitiz Power Corp., and Taiwan Cogeneration International Corp.
Pangilinan attributed the changes to the issues surrounding the transmission line connection.

“There were issues on the distance of the connection of the transmission line to the grid,” Pangilinan told reporters.

He explained that the transmission line from the power plant to the grid will have to go through areas that are apparently occupied by indigenous people.

“There are pockets where there are reserved areas. So you know we cannot build on top of that. That’s prohibited by law,” he said.

The project was originally conceived as 600 MW power facility, composed of two 300 MW coal­fired plant.

Its construction was delayed because of the Writ of Kalikasan filed before the Supreme Court (SC) by groups opposing the power plant.

The High Court upheld the project’s environmental compliance certificate, as well as the lease and development agreement with the Subic Bay Metropolitan Authority.

The project is now in the construction phase after the consortium has hired the engineering, procurement and construction contractor.
The consortium has tapped a group of local banks to help finance the project. The power plant is expected to contribute additional generating capacity to the Luzon grid. (Ritchie A. Horario, The Manila Times)

http://www.manilatimes.net/rp-energy-cuts-subic-power-plant-capacity-target-to-300-mw/195801/

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SBMA to resume talks with consortium for Subic coal-fired power plant

Negotiations between the Subic Bay Metropolitan Authority and RP Energy for a 600-megawatt coal-fired power plant will resume soon after the Supreme Court upheld the validity of the environmental compliance certificate issued by the Department of Environment and Natural Resources to the Aboitiz-led consortium.

However, local government officials and an independent group of Subic Freeport locators vowed to press their opposition to the coal-fired plant despite the ruling of the high court, which also denied a petition for a writ of kalikasan against the power plant’s construction.

SBMA Chairman Roberto V. Garcia said they had been locked in negotiations with RP Energy -- the consortium of Aboitiz Power, the Manila Electric Co. and Taiwan Cogeneration Corp. -- when they were forced to stop by the petition for the writ of kalikasan.

The first issue, said Garcia, is the lease rate.

“Under the original lease agreement, the rental was for only P1 million per year. During our last negotiations, we were able to raise that to P200 million per year,” Garcia said.

The second issue was about which environmental standard to adopt in constructing the power plant.

“Because of (the need to protect) tourism, the SBMA board’s sentiment was that we should adopt higher air quality standards, which is the World Health Organization standard,” the SBMA chair explained. “Meralco’s position, on the other hand, was only to meet the Philippine standard, just like what is being imposed on other power plants.”

“Third, there were previous MOUs (memorandums of understanding) that were signed before involving local government,” he said. “Now, under the lease agreement, these rights were distinguished. In fact they did not have rights in the first place because there were only MOUs. That is the third point that we are discussing.”

“Now that the SC has finally decided on the issue, we will now continue discussions on these issues.”

However, the Subic Bay Freeport Chamber for Health and Environment Conservation, a group of locators, believes the fight against the coal-fired power plant is not yet over.

“The reversal of the validity of documents is not to say that the SC Justices favor coal as a fuel,” the SBFCHEC said in a statement.

“We believe that the coal is a dying fuel. It is on its way out of the world stage. We believe it will be banned by the world within 10 years, and it is foolish for RP Energy, Inc. to build something that will soon be banned by the world. It is foolish for the Philippines to allow such investments,” SBFCHEC president Gregorio Magdaraog stressed.

“Two hundred years ago, coal gained prominence during the industrial revolution and has become the basis of development. But since only few coal plants were established then, the plants did little in destroying the environment,” Magdaraog explained.

“Over the years, other energy options were discovered. But the American capitalists have already heavily invested in coal and related industries. The less than one percent who owns the world also owns coal so they are bound to protect coal, despite the existence of other energy generation options. That is the political economics of the coal industry. But sooner or later, they will junk coal, but they will sell coal first,” he added.

Magdaraog predicted that, “in ten years, we will almost be independent from Meralco for power supply because of other options like solar power.”

“If that is so, why should we embrace coal?” he asked. (Ansbert B. Joaquin, InterAksyon.com)

http://www.interaksyon.com/business/104510/sbma-to-resume-talks-with-consortium-for-subic-coal-fired-power-plant

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SC clears way for long-delayed Subic plant

THE SUPREME COURT finally cleared the way for a Meralco-led consortium to build its long-delayed 600-megawatt coal-fired power plant in Subic, Zambales.

In en banc session on Tuesday, justices voted 13-0 to uphold the validity of the coal power project of Redondo Peninsula Energy, Inc. (RP Energy) in Barangay Cawag.

The ruling upheld the validity of the environmental compliance certificates issued by the Department of Environment and Natural Resources (DENR) on December 2008 and July 2010. It also upheld the validity of the June 2010 Lease and Development Agreement with the Subic Bay Metropolitan Authority (SBMA).

Associate Justices Estela M. Perlas-Bernabe and Mario Victor “Marvic” F. Leonen voted in favor of RP Energy, but with qualifications, Supreme Court Public Information Office (PIO) Chief Theodore O. Te said in a briefing.

The high court also unanimously voted to deny the petition for writ of kalikasan filed by former Bayan Muna Rep. Teodoro A. Casiño and other individuals, as well as the organizations Advocates for Wildlife and Environment Protection, Wildlife in Need, Subic-Olongapo Cancer Foundation, Inc., and PAMALAKAYA (National Federation of Small Fisherfolk Organization in the Philippines).

Associate Justices Arturo D. Brion and Francis H. Jardeleza took no part in the voting, with the former being on leave and the latter inhibiting due to his previous involvement as Solicitor-General.

A full copy of the decision has yet to be issued.

The decision reversed the January 2013 ruling by the Court of Appeals invalidating the project’s amended environment compliance certificate (ECC) due to RP Energy’s failure to conduct a new environmental impact assessment.

The appellate court’s earlier decision was also based on the supposed lack of consent from the local government and the National Commission on Indigenous Peoples (NCIP) to support the Lease and Development Agreement with SBMA.

RP Energy is a joint venture of Meralco PowerGen Corp., Aboitiz Power Corp., and Taiwan Cogeneration International Corp..

The project was originally expected to go online by the this year’s dry season but development was halted because of the writ of kalikasan filed against the project.

The Supreme Court first released a resolution on the writ dated July 31, 2010, against Environment Secretary Ramon Jesus P. Paje, the Subic Bay Metropolitan Authority and RP Energy.

Such writs serve as a judicial remedy to protect against projects inflicting possible environmental damage that affects inhabitants.

The petitioners claimed RP Energy violated its environmental impact statement and environment compliance certificate (ECC).

The petitioners also claimed the ECC was issued without complying with the conditions of affected indigenous people and without prior approval of local government units.

While the project proponents have yet to receive their respective copies of the court’s decision, they welcomed the development saying this would help the energy industry.

“We have yet to read the decision. Assuming it’s all positive, then it’s good for the industry,” said Alfredo S. Panlilio, senior vice-president of Manila Electric Co., the parent firm of Meralco PowerGen.

Stephen G. Paradies, senior vice-president of Aboitiz Equity Ventures, Inc. (AEV), also said AboitizPower has yet to receive a formal copy of the decision.

AEV is the parent company of AboitizPower.

“We intend to pursue this project. It’s very good news,” said Mr. Paradies. (Claire-Ann M. C. Feliciano and Vince Alvic A. F. Nonato, BusinessWorld)

http://www.bworldonline.com/content.php?section=Economy&title=sc-clears-way-for-long-delayed-subic-plant&id=102060

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Subic Enerzone seeking higher power tariff at P1.5625/kwh

Subic Enerzone Corporation, which has been serving more industrial-dense subscribers primarily in the freeport zone, is seeking an upward adjustment in its power distribution tariff to P1.5625 per kilowatt-hour (kwh) from what was previously approved at P1.4905 per kwh.

The Energy Regulatory Commission (ERC), in its notice for publication of the SEZ’s filing, noted that the distribution firm has recomputed its maximum average price (MAP) for regulatory year 2015 and it arrived at a higher figure.

The ERC emphasized that in the rate translation, the SEZ “has recalculated the MAP for the regulatory year 2015, without taking into account side constraints, at P1.5625 per kwh.”

For residential customers of SEZ, it was laid down that the estimated distribution charge will amount to P1.8815 per kwh; supply charge will be at P0.2414 per kwh; while metering charge will be at P0.1981 per kwh.”

To the level of the industrial end-users, SEZ’s proposed pass-on rates will be: P0.6346 per kwh; P301.81 per kilowatt; supply charge at P4,919 per customer/month; and metering charge at P1,758.94 per customer/month.

The SEZ has noted that “the approval of the instant application will allow it to fulfill its obligations under the PBR (performance-based regulation)” – referring to the methodology in setting electricity tariffs for regulated power entities.

It added that an immediate regulatory approval shall also allow it to “implement in a timely manner its capex (capital expenditures) and OPEX (operating expenses) programs for the regulatory year 2015.”

If that is accomplished, the Subic utility firm stressed that it would be able to “avoid losses which may ultimately result in the deterioration of services to its customers.”

The ERC thus scheduled a public hearing on the SEZ’s recalculated tariff application on January 9, 2015 at the Subic Freeport Zone in Olongapo City.

“SEZ and all interested parties are directed to submit, at least five days before the date of the initial hearing and pre-trial conference, their respective pre-trial briefs,” the ERC has stipulated in its hearing notice.

This is already the fourth year of the utility firm’s second regulatory reset under the forward-looking approach of rate regulation via the PBR scheme. (Myrna Velasco, Manila Bulletin)

http://www.mb.com.ph/subic-enerzone-seeking-higher-power-tariff-at-p1-5625kwh/

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Subic Ayta tribe okays $200-M renewable energy project

The Pastolan Ayta community has approved the establishment of a renewable energy project to be located inside an 800-hectare area of the Ayta ancestral domain in the Subic Bay Freeport Zone.

Ayta tribal chieftain Conrado Frenilla and Ayta elder Bonifacio Florentino signed a memorandum of agreement on Friday with Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia and Jobin SQM Inc. President Nancy Tan for the implementation of the energy project on Mount Sta. Rita here.

Tan also presented the Ayta leaders with a P1-million check representing the company’s donation to the tribe.

The proceeding s was witnessed by representatives from the National Commission on Indigenous Peoples (NCIP), which oversees the welfare of native communities.

According to Chairman Garcia, Jobin SQM Inc. intends to build a $200-million facility here that will produce power from clean energy sources. The facility will produce 150 megawatts of combined solar and wind energy.

Garcia said the project is in line with RA 9513, or the Renewable Energy Act of 2008, which aims to accelerate the exploration and development of renewable energy resources, increase utilization of such and promote their efficient and cost-effective commercial application. The law was also designed to effectively prevent or reduce harmful emissions to protect public health and the environment.

The alternative energy project, Garcia further said, was formally committed during President Aquino’s state visit to China in September 2011.

The development and promotion of renewable energy has been set as among the priority projects of the national government under the Investment Priorities Plan of 2012.

To carry out the Subic project, Jobin has successfully satisfied the requirements set by the Department of Energy and has engaged the partnership of HydroChina International Engineering Co., LTD. (HIECL) for a joint venture.

HydroChina, which engages in renewable energy development projects worldwide, operates projects in the fields of hydropower and water conservancy, solar and electric power, as well as ports, highways and buildings.

Garcia said the Jobin project will be a pioneering venture for the establishment of renewable energy facilities in the Subic Bay Freeport Zone. (HEE/MPD-SBMA)

PHOTOS:
[1] SUBIC RENEWABLE ENERGY. SBMA Chairman Roberto V. Garcia (center) signs an agreement for the development of renewable energy projects in the Subic Bay Freeport with Jobin SQM President Nancy Tan (2nd from right), and Ayta tribal leaders Conrado Frenilla (2nd from left) and Bonifacio Florentino. The alternative energy project—a 150-megawatt solar and wind power facility—will be located at an area covered by the Ayta ancestral domain in the Subic Bay Freeport Zone. (AED/MPD-SBMA)

[2] P1-MILLION DONATION. Jobin SQM President Nancy Tan presents a check worth P1 million to Ayta tribal chieftain Conrado Frenilla, as SBMA Chairman Roberto V. Garcia looks approvingly. Jobin SQM Inc. will develop a 150-megawatt solar and wind power facility that will be located at an area covered by the Ayta ancestral domain in the Subic Bay Freeport Zone. (AED/MPD-SBMA)

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40th PBC submits 8-point Resolutions to PNoy

The following are the approved 8-point Resolutions of the 40th Philippine Business Conference and submitted to President Benigno S. Aquino III during the final day of the conference on October 24, 2014 at the Manila Hotel.

1.ENERGY AND POWER:

•Resolution urging the National Government to formulate an integrated and sustainable energy and power development roadmap with a clear, definite target level of power supply capacity and rate; doable and time-bound strategies to achieve the desired goals; a well-defined process that shall be directed, facilitated and regularly reviewed by an authoritative body; and, premised on the goal to revitalize manufacturing, attract more quality foreign investments and achieve sustainable and inclusive growth

•Resolution supporting the implementation of the Department of Energy’s (DOE) Demand Aggregation and Auctioning Policy (DASAP) which will induce transparent and efficient supply contracting, attract more direct investments in power generation, create greater competition and generation adequacy and thereby defining a firm process policy of specified periodic public international bidding for base load and reserve capacity based on 100% of aggregated projected demand and standardized Power Supply Agreement (PSA) with strong participation and role of the Energy Regulatory Commission to expedite simultaneous approval of the Power Supply Agreement .”

•Resolution to support the implementation of the Philippine Qualifications Framework (PQF) and the ASEAN Qualifications Framework for global competitiveness.

•Resolution to support the K-12 Program of the government thru the Department of Education and the Technical Education and Skills Development Authority (TESDA).

•Resolution for government and business chambers, associations and enterprises to enter into partnerships in the implementation of the National Qualification and Certification System, and thereby ensure the preparation of our human resources with relevant competencies for the world of work.

3.ASEAN INTEGRATION:

•Resolution urging the Government to draw strategies and programs that would promote and support the integration of the small and medium enterprises (SMEs) in the global and regional value chains.

•Resolution urging the Government to come up with a clear program, developed jointly with the private sector, for the promotion and security of Philippine brands in view of the ASEAN.

•Resolution urging the Government to improve the physical connectivity of Mindanao to BIMP-EAGA and the rest of ASEAN.

4.PORT CONGESTION:

•Resolution urging the National Government to decongest Metro Manila, develop the countryside and strengthen provincial and regional economic growth areas to complement, supplement, fortify and sustain Metro Manila’s Economic Growth and Development.

•Resolution urging the relevant government authorities to maximize the utilization of the Subic and Batangas Ports by shifting container traffic and focusing all future port developments thereat.

5.TRAFFIC CONGESTION:

•Resolution urging the National Government, the Metropolitan Manila Development Authority and local governments within Metro Manila to ensure the smooth flow of traffic within the Metropolis, instill discipline among drivers and operators of public utility vehicles (PUVs), promote road use efficiency and safety and driver/operator responsibility by designating and strictly enforcing pick-up and drop-off points for passengers and designating terminals for said PUVs

6.TRANSPORTATION AND INFRASTRUCTURE:

•Resolution urging the prioritization of the full development of the Clark International Airport parallel/twin with the Ninoy Aquino International Airport before other airports.

•Resolution urging the President to revisit the plan to construct C-6 and to complete the construction of C-5.

7.AGRICULTURE:

•Resolution urging the National Government to implement the proper infrastructure and policy directions to ensure food security specifically hastening Agri-Mechanization and modernization to be at par with our ASEAN neighbors especially with the advent of the AEC Integration in 2015.

8.REHABILITATION OF EASTERN VISAYAS:

•Resolution urging President Benigno Simeon Aquino III to start and fast track the completion of the Yolanda rehabilitation and recovery projects in Eastern Visayas.

http://www.mb.com.ph/40th-pbc-submits-8-point-resolutions-to-pnoy/

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SBMA, Jobin sign deal for $200-M solar/wind power project in Subic Freeport

The Subic Bay Metropolitan Authority (SBMA) has signed an agreement with Jobin-SQM, Inc., an all-Filipino corporation, for the establishment here of a $200-million renewable energy facility that will produce electricity from both solar and wind power.

SBMA Chairman Roberto Garcia and Jobin-SQM, Inc. President Nancy Tan signed an agreement reserving an 800-hectare property on Mt. Sta. Rita where the firm eyes to produce 20-megawatts (MW) of solar energy and 50 megawatts of wind energy.

Garcia said the project was formally committed during President Aquino’s state visit to China in September 2011.

The proposal is in line with Republic Act No. 9513, otherwise known as the Renewable Energy Act of 2008, which aims to accelerate the exploration and development of renewable energy resources, increase utilization of such and promote their efficient and cost-effective commercial application, and effectively prevent or reduce harmful emissions protecting health and the environment.

The national government has declared the development and promotion of renewable energy as among its priority projects under the Investment Priorities Plan of 2012.

Garcia said Jobin has successfully satisfied the requirements set by the Department of Energy (DoE) in line with its intention to develop the solar and wind power project and has signed a Memorandum of Agreement (MOA) with the SBMA for the reservation of the project site prior to signing a lease agreement.

Thomas Garcia, Jobin-SQM Inc. stockholder, said the firm is keen on developing the Subic project, which is expected to turn on power by June 2016.

“Subic, we believe, is a progressive place and there’s a lot of potential. I like Subic,” Garcia added.

The renewable energy project has been in the pipeline since 2011 when Jobin entered into a joint venture agreement (JVA) with Hydrochina International Engineering Co., LTD. (HIECL) for the development of the said project.

Hydrochina Subic LTD Corp., which is the Filipino counterpart of HIECL, has been tapped to undertake the Subic project.

Meanwhile, HIECL will be in charge of the technical aspect of the project, including engineering, procurement and construction. (RFD/MPD-SBMA)

PHOTO:
SBMA Chairman Roberto V. Garcia shakes hand with Nancy G. Tan, president of Jobin SQM Inc., after signing a memorandum of agreement for the establishment of $200-million renewable energy project in the Subic Bay Freeport. With them are other SBMA officials and representatives of Jobin SQM Inc.

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Meralco pushes forward reparations at Subic plant site

The Subic freeport zone is likely the final plant site for the planned 600-megawatt coal fired power facility being lead-developed by the power generation arm of Manila Electric Company (Meralco) – primarily when a pending court case on the project eventually clears up.

A document from Meralco has hinted that the Subic Bay Metropolitan Authority (SBMA) is set to ratify the Lease and Development Agreement (LDA) for the proposed plant site “to reflect additional terms.” No further details were provided.

It must be culled that the original LDA was declared invalid by the Court of Appeals (CA), alongside its ruling on a Writ of Kalikasan filed by groups opposing the project.

The petition was filed before the Supreme Court, but it was subsequently remanded to the CA for hearing on the merits of the case.

The proposed 600-megawatt power facility was initially targeted for commercial operation by 2015, and it could have placed Luzon grid on ‘safe ground’ versus the feared power interruptions especially during the high-demand months of summer.

The project is to be undertaken under corporate vehicle RP Energy. Meralco PowerGen is the majority equity holder, while its partners are Therma Power, Inc. of the Aboitiz group and Taiwan Cogeneration International Corporation.

On pre-construction activities, the Meralco document indicated that “RP Energy is proceeding with certain development activities that are not hampered by the SC proceedings.”

As of March this year, it was emphasized that “site preparation work is almost complete and RP Energy has commissioned its contractor to conduct preliminary engineering works on the power plant in order to reduce the overall construction period.”

An environmental compliance certificate (ECC) was already issued by the Department of Environment and Natural Resources (DENR) for the two blocks of 300-megawatt electricity generating units designed for the facility.

Full implementation, however, could not move forward until the legal hurdle of the pending Writ of Kalikasan is resolved by the courts.

While the appellate court has initially denied the Writ of Kalikasan petition, it conversely noted “certain deficiencies in the process of the DENR in its issuance of the original ECC for the 300MW coal-fired plant” which has also affected the LDA for the project site. (Myrna Velasco, Manila Bulletin)

http://www.mb.com.ph/meralco-pushes-forward-reparations-at-subic-plant-site/

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