MGEN eyes reliability, battery storage as Visayas power demand grows

CEBU CITY — The continuing strain on the Visayas power system is pushing Manila Electric Co. (Meralco) Group’s generation arm to strengthen plant reliability, expand battery storage, and maintain a mix of generation sources as electricity demand continues to climb.

MGEN Therma Energy Inc. President and CEO Arnel Santos said the recent tight supply situation in Cebu and other parts of the Visayas highlights the need for dependable generating facilities that can consistently deliver power when required.

Speaking during a media briefing on Sept. 2, Santos pointed to increasing electricity consumption and generating units operating below capacity or going offline unexpectedly as among the factors behind the current pressure on the grid.

He said MGEN is therefore continuing investments in maintenance and equipment improvements to keep its existing facilities dependable.

One of the company's major ongoing activities is the overhaul of a generating unit at Cebu Energy Development Corp. (CEDC) in Toledo City.

The scheduled maintenance involves detailed checks of the plant's turbine and boiler. MGEN Thermal Chief Operations Officer Samuel Manlosa Jr. said the work was coordinated with the National Grid Corp. of the Philippines (NGCP) and is part of the company's effort to address equipment issues before they become major problems.

“A core foundation of reliability is you actually do predictable plan interventions on equipment. It is more complicated if the equipment is shut down. You just have to mobilize and repair,” Manlosa said.

MGEN said the overhaul is proceeding according to schedule, with the unit expected to return to operation based on the timetable submitted to NGCP.

The company noted that the shutdown is different from an unplanned or forced outage because scheduled maintenance allows both the plant operator and grid manager to anticipate the temporary reduction in available capacity.

Battery storage provides added support

MGEN is also turning to battery energy storage as another tool to help manage fluctuations in the power system.

Its battery facility in Toledo can respond rapidly when there are sudden changes in grid frequency or when a generating facility or feeder unexpectedly goes offline.

Santos said the system can provide immediate support while other power plants are still increasing their output.

The battery can also supply electricity during high-demand periods, including times when solar facilities are unable to generate power. MGEN said the Toledo facility has been performing according to expectations.

However, Santos stressed that battery storage is meant to work alongside, rather than take the place of, baseload generation.

The company sees storage as a way to provide fast-response capacity and help stabilize the grid while conventional and renewable sources continue supplying bulk electricity.

More generation investments being studied

As demand continues to rise, MGEN is also evaluating potential investments in additional generation capacity.

Santos said the company's strategy is built around a combination of liquefied natural gas, renewable energy, battery storage and existing thermal facilities.

For Cebu, however, MGEN has yet to identify a specific new generation project for development.

The company is also considering opportunities that may emerge through power supply auctions being conducted under the Department of Energy, as well as changes in government policy.

MGEN expects electricity demand in the Philippines to increase by about 6% to 7% annually over the next three to five years, supported by economic expansion and population growth.

For the Visayas, the challenge will be ensuring that new capacity keeps pace with demand while maintaining enough dependable supply to prevent the grid from becoming increasingly vulnerable during outages.

MGEN currently operates several assets serving the region, including four 83-megawatt generating units in Toledo, battery storage and diesel facilities in Cebu, and generation assets in Panay.

With Visayas peak demand nearing 3,000 megawatts during certain periods, the company said investments across different technologies will be necessary to keep up with the region's growing electricity needs. | Carmel Pedroza