The Alsons Power Group is seeking help from the Energy Department to address its transmission issues that could delay the completion of its power project In Sarangani, Mindanao that would give off an additional 105-megawatt (MW) supply to the region’s power cooperative.
Sarangani Energy Corp. (SEC) CEO Tirso Santillan, in a letter to energy secretary Alfonso Cusi, has requested for an urgent intervention of the DOE to install the necessary assets for the connection of the power project to the grid.
Santillan said that they need to complete the connection of the power project to the grid in order to meet its timetable.
The said project is the second 105-MW phase of its 210-MW circulating fluidized bed coal-fired power plant in Maasin Sarangani which is set for commercial operations in January 2019.
SEC needs to have all necessary assets mechanically complete, tested and operational by May 15 this year to be able to start commissioning that involves various commercial operation test before the plant can commercially operate.
The company has been asking the NGCP to allow it to install the necessary facilities in the Klinan substation to connect Phase II to the grid. However, this has been pending for 15 months.
The delay will cause severe consequences to SEC and its customer distribution utilities who have already considered the additional supply in their projections.
“As the delay in Phase Its connection to the grid will affect the commencement of commercial operations, SEC may be put in default of its contractual commitments to its customers to deliver their respective contracted capacities,” Santillan said.
The second unit has contracts with the Cagayan Electric Power and Light Company Inc., Cotabato Electric Cooperative Inc., Davao del Sur Electric Cooperative Inc., Iligan Light and Power Inc., South Cotabato I Electric Cooperative Inc. and the Zamboanga del Sur I Electric Cooperative Inc.
“NGCP’s inaction and its discriminatory treatment of SEC is an abuse of its franchise,” Santillan said.
The SEC official said that under the Electric Power Industry Reform Act of 2001 (EPIRA), the NGCP is mandated to provide open and non-discriminatory access to the transmission system to all electricity users.
“SEC thus seeks the urgent intervention of the DOE on the immediate action allowing the installation of the aforementioned assets by SEC, no that the rights and interests of SEC and its customers, as well as of the electricity consumers of Mindanao, may be protected,” Santillan said.
