TeaM Energy to sell excess power in spot market
TeaM Energy Corp., the new owner of the Philippine assets of Atlanta-based Mirant Corp., will sell the excess 280-megawatt output of its Sual coal-fired facility in the wholesale electricity spot market (WESM).
This will be made possible after the state-run National Power Corp. (Napocor) agreed to this proposal.
Napocor already had a prior agreement with Mirant to sell excess electricity to the state-owned power firm’s bulk users.
“Napocor will not definitely object to this,” Cyril C. del Callar, Napocor president, said.
He said he is amenable to the sale of the excess power in the electricity market as this will help increase supply in the system.
“It’s 280 megawatts of excess uncontracted energy. That’s an additional source of power for
But the Napocor chief stressed TeaM Energy should ensure that this excess power is available. “My only condition is that they make sure that it’s real power and not paper trading.”
Del Callar also urged TeaM Energy to establish a protocol with the WESM and the Power Sector Assets and Liabilities Management Corp. (PSALM) on the plan to trade the excess capacity.
Sual’s total installed capacity is 1,200 mw, but only 75 percent of the 1,000 mw covered by the energy conversion agreement (ECA) inked by project developers with Napocor is being sourced. This means that more than 200 mw of capacity is not being sold by Sual.
Philippine Electricity Market Corp. president Lasse A. Holopainen earlier said TeaM Energy has hinted the possibility of trading the excess capacity at the WESM.
Holopainen, however, noted that there should be an assurance that there is enough supply to fuel the excess power.
Napocor is responsible in securing the coal supply for Sual but only within the contract level.
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