Semirara Mining and Power Corp. chairman and CEO Isidro Consunji said that Luzon Island’s power situations may be faced with multiple challenges in the next two years, with 2023 being the “most challenging.”
In a report by Philippine Star, Consunji said that 2023 may be faced with tight margin between demand and supply, while higher electricity prices may be experienced by 2024.
Consunji said that 2023 may be the most challenging, considering the liquefied natural gas (LNG) resources are “not yet ready,” and may lead to potential power interruptions.
For 2024, power may be more expensive considering that “LNG is ready.” However, the business tycoon said that the price of LNG is probably 50% higher than coal.
Department of Energy (DOE) Secretary Raphael Lotilla is looking at a “difficult” first half due to power supply.
The DOE earlier cited that the delay of some LNG projects and the inability of Malampaya to produce more gas supply could have an impact on the power supply for the summer months.
Meanwhile, First Gen Corporation’s LNG terminal is looking to make its first LNG delivery by the month of July.
Earlier today, the Luzon Grid was placed on Yellow Alert by the National Grid Corporation of the Philippines (NGCP) as four power plants went on forced outages, while three others are running on derated capacities.
In a statement, NGCP said that the Luzon Grid will be on Yellow Alert from 1:00 PM to 4:00 PM, and from 5:00 PM to 7:00 PM.
The current available capacity on the Luzon Grid is 11,572 MW, while the peak demand is at 10,548 MW.
2,080 MW is currently unavailable to the grid.