Napocor to increase use of hydroelectric power

State-owned National Power Corp. (Napocor) said yesterday it will increase the utilization of its hydroelectric power plants to offset any reduction in capacity that may come as a result of an ongoing mediation between the state power firm and the Manila Electric Co. (Meralco).

Napocor president Rogelio M. Murga said the increased utilization of hydro plants will help equalize any reduction in the utilization of its other power generation facilities, particularly the 600-MW Batangas Coal-Fired Thermal Power Plant in Calaca, and the 425-MW Makiling-Banahaw Geothermal Power Plant in Laguna.

According to Murga, the Calaca plant will run at less than half its capacity or 280 MW, while the Mak-Ban plant will run at only 235 MW. This will allow Meralco’s two IPPs: First Gas Power Corp. and Quezon Power Philippines Inc., to run at their minimum energy quantity (MEQ) levels.

As initially agreed upon by the two parties, Napocor will allow Meralco’s IPPs to operate at MEQ levels. Otherwise, the state-run power firm will pay penalties to Meralco.

To enable Meralco’s IPPs to meet these MEQ levels, Napocor has to limit the dispatch of its power plants in the so-called "Southern Corridor" until the Batangas Transmission Reinforcement Project (BTRP) is completed.

BTRP will strengthen the transmission line that will enable all the power plants in the Southern Corridor to pass from Batangas to Manila. The BTRP is expected to be completed by the first half of 2004.

Murgas said increasing the utilization of the hydropower plants will also help reduce the power company’s generation costs.

"This reduction, we hope, will result in lower losses for Napocor," the Napocor president said. "Hydro, being a renewable source of energy, will help save on fuel costs since we have an abundant water resource. In Luzon, even with a reduced off-take from Calaca and Mak-Ban, we still have the San Roque hydropower plant, which is a peaking plant, but is now being used as a baseload plant."