Small power generators seek gov’t support

MANILA, Philippines - Small-scale power generators are urging the government to put in place policies that are friendly to the small players to help lower electricity prices in the country.

Applied Systems Manufacturing, a local generator set manufacturer, said small-scale power generators are as capable of producing power as the big generators are but may only help in solving the power crisis through the net metering scheme.

 “We must include small scale power generation in our energy portfolio by instituting policies friendly to small scale power. We must involve the ordinary Filipino in power generation by having policies that make small-scale power generation feasible and profitable. Only by doing these will we have solutions to the high cost of power and our lingering power crisis,” said Applied Systems president Roland Lorilla.

The net metering system is provided under the Renewable Energy Law of 2008. It allows electricity end-users who are updated in the payment of their electricity bills to their distribution utility to engage in distribution generation.

 “Unfortunately, net metering is allowed only for renewable energy generation. What we need therefore is to allow net metering for all types of energy generation. What our country needs now is power but not necessarily clean power. Above all our country needs cheap power. Power from renewable energy is expensive and will only add to the already high cost of power,” he said.

At present, he said, the current energy generation of the country relies only on big power plants to produce power.

 “This opens the power generation market only to big corporations and multinationals who have the financial capabilities to enter into big contracts and projects,” Lorilla said.

According to Lorilla investing in generators can also be cheaper for consumers on the back of the current regime of lower oil prices.

He said that with lower oil prices, electricity produced by generators is now cheaper compared to electricity from the grid.

 “Take for example a 100-kilowatt diesel genset.  The fuel consumption of this machine would be around 28 liters of diesel fuel per hour while delivering an output of 100 kilowatts. At the current price of diesel fuel, which is P26 per liter, this translates to P728,” he said.

Including the cost of oil and operating and maintenance cost, the direct cost to produce 100 kw of electrical power for one hour is P7.37 per kwh, Lorilla said.

This, he said, is lower than the utility price of P13.46 per kwh or even at P10 per kwh.