The Energy Regulatory Commission (ERC) engaged with power industry stakeholders to help ensure stable and reliable electricity supply for consumers during a meeting with the Philippine Independent Power Producers Association (PIPPA), as it continues to monitor potential impacts of rising Middle East tensions on global fuel markets.
Stakeholders discussed developments related to gas supply from the Malampaya Gas Field, including the issuance of certificates of use that allow power plants to access gas from the offshore facility. Industry officials said there may be available pipeline capacity that could supply facilities such as the South Premiere Power Corporation (SPPC), which has expressed readiness to receive additional gas should supply become available.
ERC Chairperson and CEO Atty. Francis Saturnino Juan emphasized the importance of maximizing indigenous energy resources to help cushion the impact from possible volatility in imported fuel supply.
“We should maximize the use of our indigenous energy resources, particularly Malampaya gas.”
“We should maximize the use of our indigenous energy resources, particularly Malampaya gas, especially in the coming months when LNG supply from abroad may be uncertain and global prices may not be favorable,” Juan said.
The meeting also discussed the potential role of domestic coal supply from Semirara Mining and Power Corporation in supporting certain coal-fired power plants should international coal supply tighten. Company representatives said Semirara has the capacity to supply coal to plants that utilize lower-calorific value (CV) coal, such as circulating fluidized bed (CFB) plants with certain limitations.
Industry officials likewise shared updates on additional generation capacity expected to enter the grid in the coming weeks, some from Citicore, and Terra Solar is going to feed around 200 to 250 megawatts of new capacity beginning in mid-March.
Juan said the ERC remains ready to facilitate regulatory approvals where necessary to ensure that available generation capacity can be utilized as soon as possible.
“What we need now is constant dialogue with industry stakeholders,” the ERC chief said.
“The ERC remains open to suggestions on how we can address or mitigate potential risks.”
“Developments can change quickly, so the ERC remains open to suggestions on how we can address or mitigate potential risks. Our goal is to ensure that any regulatory action is carefully considered and in the best interest of the country,” he added.
The ERC said it will continue engaging with power producers and other industry stakeholders to monitor supply conditions and discuss contingency measures.
Recently, the Commission also met with the Independent Electricity Market Operator of the Philippines (IEMOP) to review market simulations assessing possible scenarios involving higher fuel prices and potential supply constraints.
