Catanduanes, Philippines
Lower Dugui Mini Hydro Power
Plant
Basic Features
• Isolated from the main Luzon Grid
• Power source is mainly diesel generating
sets operated by the government.
• Available power supply is 11,000 kW.
• The existing Hydro Power Plant available
capacity is 1,600 kw or about 15 %.
Trends and issues …
• Under EPIRA law, the Department of Energy
issued a circular, in December 2003, “Enjoining
All Distribution Utilities to supply adequate,
affordable, quality and reliable electricity.”
• Then in January 26, 2004, another circular was
issued, this time, opening to the private sector
the generation of electricity in the 14
provinces considered as missionary areas.
• Catanduanes is one of the first wave provinces
for power privatization
• FICELCO is the lone distribution utility in
the province. It is a cooperative owned by
the electric consumers in the area who
also directly elects its Board of Directors
• Power One Corporation, a private
Filipino owned power producer, has an
MOU with FICELCO to supply electric
power on a competitive basis and take ove
the generation functions from NPC-SPUG.
Trends and considerations…
• Power One Corporation acquired two Bunker C
type generating sets rated at 2.5 Kw and now at
the preparations stage. PO upon turnover by
NPC-SPUG will lease a 3.6 MW bunker C
generating set from NPC. This is already
installed at Marinawa Plant but will still be
rehabilitated to make it operational.
• Diesel price is sensitive to international demand
and supply. Consumers cannot absorb power
adjustments forever due to rising fuel costs.
Tariff rates has an automatic rate adjustment
mechanism for recovering incremental cost of
fuel and foreign exchange adjustment . Power
rates for the consumers become unpredictable.
Developments...
• MBA, in cooperation with Innovation Energie
Developpement(IED), initiated a series of
consultations, presentations, and dialogues with
local government leaders of Catanduanes,
FICELCO, and Power One Corporation.
• On October 27, 2004, an MOU was signed by
the three parties to conduct a joint study of the
Mini Hydro Power Plant Potential of Lower Dugui
in Virac, Catanduanes under the EU-ASEAN
Energy Facility sponsored IFRERA project.
POWER LOAD CHARACTERISTICS
• 21,872 MW-Hr sold in 2004
• The peak load registered is 6.5 MW and the base load is
3.2 MW in 2004.
• 68 percent residential in nature. With 75 % of all
households connected to the system
• Commercial establishments constitute 18 percent
• Government buildings comprise the single biggest
customer of FICELCO. It represents 12 percent of the
total consumption.
• Street lighting constitutes 2 percent.
• No industrial customers exist in the island.
• In 2005, the trend in consumption shifts more to the
commercial load because of mobile communication
networks in the island.
• No demand exist yet for irrigation considering 70 % of
the people depends on agriculture.
Existing Power Plants in Catanduanes
POWER PLANT
AVAILABLE
CAPACITY
(KW)
YEAR INSTALLED
REMARKS
1 224
1 224
1 000
700
600
700
1994
1994
1990
medium speed
medium speed
medium speed
900
900
800
800
1982
1982
owned by NPC
560
560
560
350
350
350
1998
1998
1998
high apeed
high apeed
high speed
560
560
560
350
350
350
2002
2002
2002
high speed
high speed
hiyh speed
2 000
2 000
1 750
1 750
2005
2005
high speed
high speed
650
650
1 060
14 968
500
500
800
11 000
1999
1999
1999
medium speed
médium speed
médium speed
INSTALLED
CAPACITY
(KW)
1. Marinawa Diesel
2.
3.
4.
5.
6.
Unit 1 - CKD, PRAHA
Unit 2 - CKD, PRAHA
Unit 6 - GM
Balongbong Hydro
Unit 1 - Hangzuo
Unit 2 - Hangzuo
Viga Diesel
Unit 1 - Rolls Royce
Unit 2 - Rolls Royce
Unit 3 - Rolls Royce
Power Barge 112
Unit 1 - Rolls Royce
Unit 2 - Rolls Royce
Unit 3 - Rolls Royce
Monark (Mobile Rented Gensets)
Unit 1 - Caterpillar
Unit 2 - Caterpillar
FICELCO Diesel
Unit 1 - Mitsui - MAN
Unit 2 - Mitsui - MAN
Unit 3 - MAN
Load dispatching scenario
• The expected merit order of load dispatch
1. Balongbong Mini Hydro
2. Proposed Lower Dugui Mini Hydro
3. Bunker C Generators of Power One
4. Diesel generators of FICELCO
FEATURES OF THE PROPOSED LOWER
DUGUI MHPP
•
•
•
•
•
Power Rating
3.144 kW
Investment Cost
PhP375 M or less
Cost per Kw-H
PhP2.14 per kW-hr
Existing NPC tariff to FICELCO PhP4.13
NPC True Cost of Generation PhP12.1221
FINANCING POSSIBILITIES
•
•
•
•
DBP window 3 Dedicated to RE Projects
Landbank
Loan with LGU Guarantee.
Joint venture with Power One Corporation
WHY FICELCO WANTS HYDRO
• Expected lower tariff to customers
Power from RE is exempt from 12% VAT
• Environment friendly
• More stable electricity rates
• Catanduanes geographic and climatic
conditions is suitable for MHPP
• Interest and support of the LGU to develop
RE instead of diesel/coal.