Contrary to IEMOP report, some coal plants postpone shipments due to declining energy demand

Rise of coal tax can lead to more RE investments

Some coal plants have been pausing their coal deliveries due to low electricity demand and not because of logistical problems, according to the Department of Energy (DOE).

This somehow countered the report of the Independent Electricity Market Operator of the Philippines (IEMOP) saying that, “the restriction of supply from coal plants may be a result of logistical delays in the transportation and delivery delays of coal brought about by the extended enhanced community quarantine.”

IEMOP further explained that this scenario could cause electricity rates to increase due to a change in the availability of power plants in the system, according to a report.

The power plant owners and operators should declare the state of availability of their capacities in the Wholesale Electricity Spot Market (WESM) due to the prevailing must-offer rule.

However, there was a mismatch in the pronouncements of the DOE and IEMOP that may cause scrutiny on which agency is stating reliable facts.

The DOE said that based in the report-submissions of the coal generating plants “their number of days of full load operation averages at 47 days.” 

The energy department said it is way beyond the 30-day requirement.

 “Out of the 28 coal-fired power plants in the country, 18 have submitted their coal inventories as of April 28, 2020,” the DOE explained.

The DOE noted that it is “continuously processing certificates of compliance for coal importation, even after the announcement of the ECQ.”