By Victor V. Saulon, Sub-editor
THE Department of Energy (DoE) has defended its move to certify the 1,200-megawatt (MW) coal-fired power plant in Atimonan, Quezon as nationally significant, saying the long-delayed project is needed to meet a critical point in the coming years when power supply will be deficient and critical.
“Bakit sinabi nila na binago ko ang aking isipan at binigyan sila ng Certificate of Energy Project of National Significance (CEPNS) without Swiss challenge? (Why do they say that I have changed my mind and gave a CEPNS without a Swiss challenge?),” Enegy Secretary Alfonso G. Cusi told reporters on Tuesday at a Senate hearing on the DoE budget for 2019.
He was referring to the granting of a certification that allows a project to enjoy some perks such as an easier and faster permitting process.
He previously said he wanted the power supply agreement (PSA) between the P135-billion project led by Meralco PowerGen Corp. (MGen) and distribution utility Manila Electric Co. (Meralco) to go through a competitive selection process (CSP) even though a regulation calling for such exercise was issued after the forging of the contract.
Mr. Cusi said the granting of the certificate is not dependent on the approval of a PSA, which is pending with the Energy Regulatory Commission (ERC). Some sectors have since questioned the legality of the PSA, an issue that has reached the Supreme Court.
“Una, bago dumating sa PSA, sa kontrata, meron nang CEPNS. The certificate does not cover PSA (First, before [the project] reached its PSA, the contract, there is already a CEPNS. The certificate does not cover PSA.),” he said.
Mr. Cusi said the PSA comes later and separate from the permits being cleared with the DoE, including the certification. He added that the DoE is not requiring an ERC-approved PSA before it will issue a CEPNS.
Mr. Cusi said the need to certify the project comes as the country needs an additional supply of 14,000 MW by 2025. Building a plant requires at least two to three years, he said, adding that by 2021 to 2022 the DoE expects power supply to be critical, thus the need to support the project’s faster implementation.
“Kung hindi ko gagawin ‘yan, ibig sabihin ‘yong permit to build will only come in 2021. So nira-rush natin ‘yan. (If I don’t do that, that means the permit to build will come only in 2021 . . . So we are rushing it.),” he said.
Sought for comment, Angelito U. Lantin, Meralco senior vice-president, said the Atimonan ultra-supercritical coal-fired power plant is the best of its kind in terms of fuel efficiency, thus the certification could usher an improvement for the next generation facilities.
“It’s good to know that the government recognizes that this project is really the first of its kind in the Philippines. So you will be able to produce a kilowatt-hour using less fuel,” Mr. Lantin said.
The DoE required distribution utilities to subject their power supply contracts to a CSP starting on Nov. 7, 2015. The move is in line with rules that require them to procure power at the least cost.
But on March 15, 2016, the ERC restated the CSP effective date to April 30, 2016. The CSP has a similar concept as a Swiss challenge.
“The PSA for the Atimonan project is with the ERC and it’s supposed to be acted on by the ERC,” Mr. Lantin said, adding that Meralco’s submission was compliant with the extended deadline.
“It was submitted on time before the deadline for the bilateral negotiations. That’s where we are, so we’re waiting for the ERC to act on our application,” he said.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls.

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