Miralco seeks "sound" policies to reduce electricity costs - BusinessWorld Online

Miralco seeks “sound” policies to reduce electricity costs – BusinessWorld Online

Manila Electric Corporation (Miralco) has called on new government leaders to put in place policies that would tackle the rising cost of electricity, and diversify the country’s fuel sources to ensure energy security and affordability.

Ray C. said.

He added, “What we need are sound government policies that can address the movement of fuel prices and foreign currencies, and an environment that encourages the development and investment of the additional capacity produced by new generation plants.”

His statement came in response to a question from a shareholder who asked if the cost of electricity could be reduced during the next management period.

“Reducing electricity prices is always possible, but it involves considering many factors that influence the movement of electricity prices. The largest and most volatile part of the [electricity] The invoice, which is the generation fee, is driven by fuel prices, forex, and the supply and demand situation.

Mr. Espinosa said that Luzon, where the company is headquartered, appears “on paper” to have enough new capacity to appear online in the next three years to meet growing demand and reserve requirements.

As a basis, use data from the Department of Energy (DoE) on “committed” power plants, or those that were able to secure funding, for the years 2022-2026.

The Department of Energy forecasts an increase in energy demand in the Luzon power grid by about 800 megawatts per year from 2022 to 2026 as required under the Philippines Energy Plan 2020 to 2040.

“To meet this, approximately 7,198 megawatts of new capacity is scheduled to be commissioned in the Luzon grid from 2022 to 2026 based on the Department of Energy’s list of committed power plants as of December 31, 2021,” Mr. Espinosa said, adding that the figure includes base-load capacity of 1,800 megawatts supplied by Miralco to suppliers last year.

He also said that Miralco is looking to secure 850 megawatts of mid-capacity supply based on renewable energy, which he said was initially proposed to be met by a hybrid plant consisting of solar and battery storage.

Medium merit power is provided by the stations to bridge the gap between power coming from peak stations, which operate at peak demand, and base-load stations, which operate continuously.

“With the recent rise in energy prices, diversification of fuel sources is important to energy security and affordability,” said Mr. Espinosa.

Meralco, together with its subsidiaries and subsidiaries within the framework of the “One Meralco” group, aspires to a shift to clean energy, including the abandonment of the use of coal in the coming years.

Meralco PowerGen Corp.’s Power Generation Units. (MGen) and Global Business Power Corp. (GBP) plans to transition to a low-carbon future, starting with the Bulacan solar power plant that became operational last year with a 55-megawatt AC Al Ahlia.

“There are three additional solar power plants currently under development and commercial operations are expected to start in the latter part of 2022 and into early 2023,” said Mr. Espinosa.

The goal is to build 1,500 megawatts of renewable energy in seven years. MGen-GBP aims to be coal-free by 2050 as a clean new generation [technologies] Technical and economic maturity.

Miralco’s power generation business completed 2021 with 2,251 MW and contributed $1.2 billion to the company’s consolidated net basic income, or more than three times the $428 million for 2020.

Last year, Meralco’s core net income rose 13% to 24.6 billion pesos, while reported net income, which was calculated in one-time adjustments, rose 44% to 23.5 billion pesos. The increase was driven by the increase in the volume of electricity sales and the contribution of the power generation business.

In response to a question from another shareholder regarding Miralco’s position on nuclear energy as an energy source, he said: “Miralco will look favorably on contracting affordable and competitive supply from generation companies including BNPP (Batan Nuclear Power Plant) if the same should be operated .”

Asked if the company could take the lead, he said, “However, Miralco may not have the in-house competencies to operate and maintain the BNPP.”

On Tuesday, shares in the company rose 0.32% or P1.20 to close at P373.20 per share on the exchange.

The controlling partner of Meralco, Beacon Electric Asset Holdings, Inc. , partly owned by PLDT, Inc.

Hastings Holdings, Inc. , a unit of MediaQuest Holdings, Inc.’s PLDT Beneficial Trust Fund. , which have an interest in Business world Through the Philippine Star Group, which is controlled by it.” — Victor F. Solon

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