Despite coal plant Iloilo City still facing most expensive electricity rates!

Growth and development of Iloilo City has been stunted by having one of the most expensive electricity in the whole world. This distinction will continue with the amendment of the power purchase agreement between Panay Electric Co. (PECO) and Metrobank’s Panay Energy Development Corp. (PEDC).

The proposed amendment of their power purchase agreement, now pending with the Energy Regulatory Commission (ERC), will bound consumers to onerous conditions for the next 25 years.

Excessive take-or-pay deal

PECO guarantees to “take or pay” excessive quantity of electricity from PEDC beyond the actual demand of its consumers.

PECO Actual Electricity Demand

• Year 2005  =  340,639,943 kWHr
• Year 2006  =  332,669,697 kWHr
• Year 2007  =  340,812,921 kWHr
• Year 2008  =  334,811,810 kWHr
• Year 2009  =  336,984,757 kWHr

However, in the pending PECO-PEDC Amended Power Purchase Agreement PECO guarantees to buy the following electricity quantity:

Baseload of 65 MW from coal at 75% Load Factor

= (65 MW)(1,000 kW/MW)(24 Hrs)(365 Days)(75%) = 427,050,000 kWhr / Year

Plus, Peaking of 20 MW from diesel (estimated)  = 87,600,000 kWhr / Year

Total guaranteed capacity = 427,050,000 + 87,600,000 = 514,650,000 kWhr / Year

The anticipated developments of Plazuela, Megaworld, Ayala and other developers will increase electricity demand by about 50,000,000 kWhr in the next few years.

With a yearly demand of less than 400 million kWhrs, PECO should not guarantee the purchase of more than 500 million kWhrs from PEDC.

It should be noted also that the Renewable Energy Law mandates distribution utilities to get at least 10% of supply from RE sources while the Electric Power Reform Act of 2001 (EPIRA) directs that at least 10% should come from the Wholesale Electricity Spot Market (WESM).

Excess electricity will be more than 100 million kWhrs that will be paid for by PECO consumers through higher rates.

Unreasonable Capital Recovery Fee

PEDC is charging Php3.474 per kWhr as capital recovery fee (CRF) for the amount of P17.88 billion supposedly spent in constructing the 164 MW coal-fired power plant. The CRF on PECO consumers would be more than Php 1.48 billion a year – enough to pay for the entire power plant in barely 12 years.

PECO consumers will be paying for the entire cost of the coal plant in 12 years despite using only less than 30% of the plant capacity =  48.75MW (75% of 65MW) out of the total 164MW coal power plant capacity.

The Php17.88 billion for the 164MW coal-fired power plant is equivalent to US$2.42 million per MW, which is very unreasonable considering that this is more than the bench mark of US$2.223 per MW for constructing a coal-fired power plant in the US in 2009 (please see: http://www.eia.doe.gov/oiaf/aeo/assumption/pdf/electricity.pdf#page=3).

Cheaper Alternative

The generation cost of PEDC’s coal is estimated at around Php 8 per kWhr (with VAT) while that of geothermal energy is only Php 4.88 per kWhr (no VAT). The EPIRA provides that distribution utilities should give its captured market with the least cost electricity.

If PECO is after the welfare of Iloilo City, there is no reason at all why it should not get most of the baseload demand from geothermal energy.

Our city will never develop its full economic potentials with the tentacles of PECO and PEDC strangling our economy.

Stop PECO and PEDC’s abuse of market monopoly power!

PECO consumers unite for affordable electricity!

DENR stops test firing of Iloilo coal-fired power plant

PEDC Iloilo coal-fired power plant (foreground) and the downwind areas during Amihan, southwest season, covering the city districts of Lapuz, La Paz and City Proper and the town of Jordan, Guimaras.

September 23, 2010

By Melvin Purzuelo
Green Forum-Western Visayas/Vera Files

ILOILO CITY. — The Department of Environment and Natural Resources on Tuesday stopped the test-firing of the newly constructed coal-fired power plant in Barangay Ingore, La Paz district due to complaints by residents of the barangay and other nearby communities about the foul odor and the noise coming from the plant.

The DENR’s cease and desist order stated that Panay Energy Development Corporation (PEDC) that owns the 164 megawatt coal-fired power plant violated provisions of their Environmental Compliance Certificate (ECC) and the clean air law.

Smokeless stack with DENR's cease and desist order. Smoking stack at right that of diesel power plants.

Engr. Aurora Alerta-Lim of the Professionals for Social Responsibility (Pro-SR) said that oxides of sulphur could have caused the foul smell.

“The plant used heavy oil for the test firing but it’s mitigation for sulphur and nitrogen oxides emissions are designed only for coal by mixing limestone. They have no desulfurization facilities to control emissions of heavy oils,” she said.

Several students of Ticud Elementary School were sent to the hospital last Thursday, September 16, when they suffered breathing difficulties.

The Freedom from Debt Coalition (FDC-Iloilo) served notices to sue PEDC, the city government and DENR for violations of the clean air act and the local government code. Under the clean air law, the State shall focus primarily on pollution prevention rather than on control and provide for a comprehensive management program for air pollution. It also provides that the Local Government Unit should adopt an Air Quality Control Action Plan.

Ted Ong of FDC-Iloilo said that “The local government code provides that no project or program shall be implemented by government authorities unless consultations were undertaken and that prior consent is given by the Sangunian concerned.”

The City Council of Iloilo City has not initiated a public consultation with the residents of Iloilo City as required and it has not passed resolution or legislation endorsing or approving the construction of the said project.

The coal plant is scheduled to start operation with one engine in December and full operation in March 2011.

Mayor Jed Patrick Mabilog said that the city government will not issue the coal plant business permit if it cannot assure the safety of the people’s health.

Philippine Coal Trail

Panian Coal Mine Pit in Semirara Island, Caluya, Antique. Seen on the background is Bulalacao, Mindoro.

other areas for coal mining exploitation:

Local sub-bituminous coal mainly for the Calaca (Batangas), Naga (Cebu) and Semirara power plants.

Cement and industrial coal users, some cement and alcohol plants are now using biomass.

Semirara Disaster

Map of Semirara Island, Sitio Bigo, Brgy. Alegria is south of the shiploader. The Unong Pit was the 1st operated in the 1980s until 1998, the 2nd pit (Panian) is still in operation. Himalian is the proposed 3rd pit.

Backdrop is the 15 MW coal-fired power plant. The black-bottom of the fisherman’s banca  indicates the coal residue in the waters.

Virtual reclamation caused by the refuse / tailings from the coal washing facility. Note the black color of the sea with coal-bits lining the shore.

Coal bits brought by the tide to the white coralline shore.

Seaweeds suffer from the coal residue.

Seaweeds is a major livelihood of the communities.

Even the fisherfolks suffer from the coal-residues with sore skins.

Dying mangroves cut, burned and bulldozed over.

Former mangrove areas that were bulldozed have been fenced-off and planted with coconut trees.

Semirara Coal Mess

Community-Based Biomass Feedstock Production

Electric cooperatives in Panay and Guimaras islands organized a consortium that conducted a bid for 90MW of baseload power supply by January 2011. The lowest bids came from biomass producers, the Asea One Power Corp. (AOPC) and Global Green Power Corp.(GGPC). AOPC offered to embed 10 power plants at 2.5 MW each for total of 25 MW while GGPC offered 2 plants at 18 MW each.

Almost all of the electric cooperatives in Panay and Guimaras have now signed power supply contracts with these two corporations for 54 MW.
These biomass power plants will use agricultural wastes, like: rice husks, straws, corn cobs, bagasse, cane trash, etc., and brushes, grasses and wood chips as fuel.

Agricultural wastes like rice and sugarcane are seasonal that gaps between harvests need alternatives.

The target operations of biomass power plants by January 2011 pose a serious challenge to stakeholders to produce sufficient feedstocks by that time.

This can be a good opportunity for the economic stimulus of the rural economy. Marginal lands can now be used for the production of feedstocks.

However, environmental impacts should be considered in the preparation and harvesting of fuelwood. There are regulations in the cutting of trees that should be seriously observed. Areas committed for feedstock productions should be clearly delineated with field preparations and plantations comprehensively documented.

Map 1, shows the location of the proposed biomass power plants by AOPC and GGPC with a radius viable for hauling. Map 2, the vegetative cover of Panay and Guimaras islands, demonstrates the following areas that are potential sources of biomass feedstocks:

• cultivated area with brushland and grassland;
• arable land, crops mainly rice and sugarcane;
• crop land mixed with coconut plantation;
• grassland, grass covering more than 70 %;
• coconut plantations; and
• crop land mixed with other plantation

Other major considerations in identifying areas for feedstock plantations (which is also related to distance from the power plants and infrastructures) are the elevation and steepness.

Map 3, roughly shows the main topography of Panay and Guimaras, namely:

• floodplains, from the mean sea level to 100 meters;
• foothills, from 100 to 400 meters;
• mid‐hills and lower mountains, from 400 to 700 meters; and
• mountains, from 700 to peaks of over 2,000 meters in Mts. Nangtud, Madiaas and Baloy.

Areas of more than 400 meters elevation are mostly very steep (more than 18% slope) and these are part of the headwaters of the various river systems. It would not be advisable to clear vegetation in these elevations.

Map 4 shows the vegetative cover of areas that are lower than 400 meters elevation and within the advisable transport / hauling radius.

Table below is the computation of areas per description of the vegetative cover.
DESCRIPTION                                                 AREA (in hectares)
Cultivated area with brushland / grassland         417,940
Arable land, crops mainly rice and sugar           254,897
Crop land mixed with coconut plantation           138,680
Grassland, grass covering more than 70%             41,420
Coconut plantations                                                     9,341
Crop land mixed with other plantation                       665
Total Area                                                        862,943
Percent of Total Panay & Guimaras                     70%

A process should be initiated with the communities, farmers’ organizations, cooperatives, academe, LGUs, and government line agencies (DENR, DA, DAR, DOST, NEDA) to delineate areas for feedstock production.

Appropriate technical, policy and financial supports should be instituted to encourage the preparation of areas, plantations and production of feedstock materials.

A STATEMENT ON COAL WASTE IN BRGY. ALEGRIA, ISLAND OF SEMIRARA

THE ANTIQUE OUTDOORS, INC.
2ND  Floor  Pedriña Nietes & Liu Chiang Law Offices
Business Park, San Jose de Buenavista 5700, Antique
Tel/Fax (036) 5405585 / (036) 3201980   email: taoincorporated@yahoo.com

A STATEMENT ON COAL WASTE IN BRGY. ALEGRIA, ISLAND OF SEMIRARA

After years of muffled grievance – amidst the haze of coal dust – a community finally has enough.  A hundred or so residents of Sitio Bigo, Alegria in September 2008 signed a petition against coal mining pollution in their community. The petition, addressed to DENR Sec. Lito Atienza, bewails of the destruction of mangrove forest and the contamination of the beach coming from the coal washing plant of the Semirara Mining Co. (SMC). Their livelihoods of fishing and seaweed growing have been badly affected due to the contamination. It endangers their health.

Coal mining operations on Semirara Island over the years produce many unresolved issues on pollution, destruction of marine ecosystems, false promises and displacement of communities, and so on. Coal itself is the dirtiest of all fossil fuels, releasing carbon dioxide into the atmosphere.

Reacting to the issue appearing in a major daily, SMC accuses complainants of maligning the company so that it would be pressured to give money to them. In effect, SMC tells us that it is falling prey from extortionist people of Alegria. The SMC really knows how to rub salt in the wound.

SMC went on to say that a typhoon destroyed the mangroves and that they have replanted them. Thanks but no thanks.  Mangroves have withstood nature’s fury long before SMC started it operations on the island. On the contrary, mangroves stand to protect coastal communities from strong waves, winds and floods. Of course, mangroves and other marine ecosystems stand no chance against man’s greed and blatant disregard of law.

Questions arise from this issue. What did the Multi-partite Monitoring Team (MMT) do to this problem? The destruction caused by the SMC is a palpable violation of environmental laws. Inaction on the part of MMT constitutes neglect. This culpability warrants legal sanctions, both for SMC and the MMT.

In an interview over a radio station, Mayor Reynante Lim of Caluya is too fast to SMC’s defense. He said the complaints are fabricated. Why his hundred or so constituents would do such a fabrication, he did not explain. Perhaps the many pictures that show mangroves dying on black silt were fakes. Or the signatures in the petition are forged? Or perhaps his true constituency lies on SMC?

Only Barangay Captain Ronald Lavega of Alegria has the courage to raise an accusing finger. In an era of double faced politicians, and on an island where M-14-totting “security men” roam around, his is a rare display of true leadership. We know that not only guns mute the weeping on this island. Cash clinks loud to silence all – from the local government units and concerned government agencies.

If the government fails to uphold its mandate, the people hope the church to step in. Pope Benedict himself issued an edict deploring environmental pollution as one of the new seven (7) deadly sins. This is not to mention greed.

It is puzzling the SMC could not spend on putting up a working washing plant or rehabilitating the ecosystems. It is benevolent enough to donate for the construction of churches or other church projects. Are the parishioners puzzled too over the silence of the “moral force”?

To whom then the beleaguered residents of Sitio Bigo turn? The Sangguniang Panlalawigan so far listened. We commend them for passing a resolution indorsing the petition, thru its sponsor Hon. Bobot Santillan.

We hope that, in a discordant political landscape, the SP Members remain steadfast over this concern. Environmental protection transcends political affiliation. This is about climate change, the conservation of our natural heritage, the future of our children, even unborn. This is about justice long past due.

We call the attention of Governor Perez and Congressman Javier. The issue provides opportunity for both of them to prove their consistency on environmental protection. Or at least to prove that their lowly constituents enjoy their protection.  Not of a pampered company.

Moreover, it is to prove that Antiquenos did not squander their struggle against the shameless waste-dumping proposal by the same polluters on the same island nine years ago.   Despite of their leaders.

Let truth and justice prevail on Semirara Island. Environmental laws are the most violated and neglected of all laws. We call on the rehabilitation of the destroyed marine ecosystems and the compensation of the affected communities and let the violators, including government officials guilty of misfeasance, answer the full force of the law.

DMCI’s ‘CLEAN COAL’ a farce!

Upper right picture shows the typical shoreline of the Caluya group of islands (source: http://www.exploreiloilo.com/caluya-a-paradise-beyond-boracay.html).

The main source of livelihood of the people of Caluya, Antique are fishing and seaweeds production. In 1998, DMCI opened the second pit, Panian, in Brgy. Semirara (upper left picture) by open strip mining. Semirara coal are used mainly by power and cement plants. Because of the outcry on the environmental and health impacts of burning coal, DMCI adopted the marketing gimmick of ‘CLEAN COAL’ technology. Literally, DMCI started washing the coal of impurities in 2005.

However, the wastes from the coal-washing facility were dumped to the sea turning the white beach into black (picture below) killing the mangroves and seagrasses and driving away all marine life including the Dugong. This illustrates there is no ‘CLEAN COAL’ – but blatant ‘green washing’ gimmicks to fool the public.

The residents petitioned DENR Secretary Atienza in September 2008 to compell DMCI to rehabilitate the area, provide alternative livelihood to the fisherfolks and compensate the affected communities for damages.

DENR issued DMCI a ‘Notice of Violation’ and scheduled an MMT (multipartite monitoring team) field investigation on March 16-18, 2009 and a hearing on the EGF (environmental guarantee fund) on March 19. DMCI is now trying to cover the area by bulldozing topsoil and planting coconut trees.

Expose DMCI’s environmental crimes!

Justice to the people of Semirara!

Help Stop Environmental Crime in Semirara, Antique

Help STOP the environmental crime in Semirara, Antique! Mangrove, seagrasses and coral reef areas are sacrificed to produce coal for electricity in Cebu, Luzon and China.

Semirara is in the Municipality of Caluya, Antique although it is nearer to Bulalacao, Oriental Mindoro than Antique. It is rich in sub-bituminous coal deposit. Going to Caluya would take about 4-5 hours by boat from the Municipality of Buruanga, Aklan or the Municipality of Libertad, Antique. Another 2-3 hours is needed from Caluya to Semirara. There is a private airport in Semirara of the DMCI (David M. Consunji, Inc.)

Map showing the location of Semirara Island relative to Mindoro, Romblon and Panay Islands

Dugongs used to feed in the sorrounding coral reefs and seagrasses of Semirara Island.

DMCI claims 3,832 hectares (75%) of the island for coal mining operations. To change the dirty image of coal, DMCI invested about $300,000 in 2005 for the purchase of ‘coal-washing’ facility and claim that they now produce ‘clean-coal’.

Unfortunately for the people of the island, the wastes coming from the ‘coal-washing’ facility are dumped directly to the mangrove, seagrass and coral reef areas in the Brgy. Alegria part of the island.

The people in the island who are mainly dependent on seaweed production and fishing are crying out for help. Their petition has been sent to DENR Secretary Atienza last September but they are not given prompt attention. They are very far from the public and the media’s eye so they are not given much attention.

Those raping the natural resources of Semirara Island are the same people who wanted to make the island the dumping ground of Metro Manila’s garbage in 2001.

Public opinion and the brave decision of RTC Judge Neri Duremdes stopped their abuses in 2001, public opinion and a strong legal action can stop them NOW!

We need everybody’s help!

Dying mangroves in Semirara