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The Department of Energy (DOE) has warned of potential supply strains if Excellent Energy Resources Inc.’s (EERI)’s natural gas plant faces a delay in power delivery.
In a media briefing on April 14, Energy Assistant Secretary Mario Marasigan said that EERI, a joint venture between Meralco PowerGen Corp. (MGen) and San Miguel Global Power (SMGP), has yet to begin delivering its committed supply, as the facility is still undergoing testing and commissioning.
“It involved 1,800 megawatts (MW) of power, wherein 1,200 MW will be sourced from the EERI’s natural gas facility,” he told reporters.
“But as far as the status of the natural gas facility is concerned, we are not yet fully aware, and per our monitoring, not all the units of EERI are already in full commercial operation,” Marasigan added.
The DOE assumed full capacity from the liquefied natural gas (LNG) plant; however, it noted that the infrastructure is still in trial runs.
“Per my understanding of the power supply agreement, delivery of the kilowatt-hours should start by August, but the full capacity should be made available by December 2024. Now, if the facilities are still under testing and commissioning, then that's one of our concerns,” Marasigan said.
According to the DOE official, if the contracted supply is delayed in delivery, the replacement power will be sourced from other existing plants that are serving other markets.
The DOE is also monitoring other LNG sources, particularly the Linseed LNG facility, but noted that its supply is currently being shared between EERI for testing and commissioning and the Ilijan plant, which could affect the availability of fuel for both.
“It's still undergoing final completion, and in fact recently, we were informed that the storage unit number 1 is for completion initially to be operational by May 15. But the latest that we have received is that it may be extended until the end of May. So that means, one of the reasons for having the EERI natural gas facilities to fill in the 1,200 MW of its contracted capacity is the lack of supply,” Marasigan added.
The government warned of supply gaps to be realized if the deal between Manila Electric Co. (Meralco) and EERI has yet to be fulfilled.
To recall, EERI secured Meralco’s competitive selection process (CSP) in 2024 by offering 1,200 MW of the 1,800-MW required contract capacity. The power will then be supplied from its 1,275-MW Ilijan plant in Batangas. The Energy Regulatory Commission (ERC) issued a provisional approval of its power supply agreement (PSA).
The initial target delivery for the 1,200 MW was in December 2024, with 600 MW anticipated by May of this year.
Energy Undersecretary Felix William Fuentebella stressed that the warning is not directed at just one distribution utility but to all distribution utilities (DUs), highlighting the need to ensure sufficient power supply ahead of the summer season and the upcoming elections.
“It’s also a reminder to other distribution utilities, as the DOE has been monitoring the necessary procurements they need to make in order to ensure the timely construction of generating facilities. One of the policies they must comply with is the renewable portfolio standards, which allows them to contract with a renewable energy [RE] facility that is embedded,” Fuentebella said.
“The responsibility of contracting at the least cost for the captive customers lies with the distribution utilities… We want to prevent any problems either with the regulator and especially [avoid] the inconvenience that could be brought onto our consumers, considering that prices may be affected by delayed delivery in accordance with the contract,” he added.
In response to the DOE’s call amid concerns over a potential power supply gap, EERI has reaffirmed its commitment to achieving full operational capacity for its Unit 3 power plant.
In response to the DOE, Yari Miralao, president and chief executive officer of EERI, stated that its facilities—namely Units 1 and 2— are online, even as Unit 3 has yet to reach commercial readiness.
“The EERI power plant has achieved significant milestones with Units 1 and 2 successfully completing the testing and commissioning process and being issued the final certificate of approval to connect (FCATC). With a combined generating capacity of 850 MW, these units are already fully operational and can now generate power,” he clarified to reporters.
According to Miralao, the 425-MW Unit 3 has yet to receive its FCATC from the ERC; however, he reported that other issues have been addressed, while the on-shore storage tank has made progress.
“At present, EERI’s power generation capacity is limited due to several process requirements related to the ongoing construction of the regasification terminal,” he explained. “It is critical for these concerns to be resolved to ensure the safe and efficient dispatch of gas from the terminal to the generating units.”
The EERI chief expects that the concerns on Unit 3 will be resolved before the end of May 2025.
“With the continued support from the DOE, National Grid Corporation of the Philippines (NGCP), and Meralco, we remain committed to ensuring that the facility can reach full operational capacity at the earliest possible opportunity,” Miralao added.
DOE, ERC join forces to boost policy process, market oversight
To further stay on track with the energy sector, the DOE and the ERC have partnered to build a framework that would ensure a timely exchange of energy data between the two government agencies.
The agencies signed a landmark data-sharing agreement on Monday, April 14, to enhance policy development, boost regulatory oversight, and assure an informed and secure better decision-making processes.
Energy Secretary Raphael P.M. Lotilla underscored the importance of the collaboration, as the DOE stated that there would be focal persons from both agencies to facilitate data transmission, as well as implement a robust data security protocol including data collection and transfer of storage.
“This data-sharing agreement would enable a better data exchange to address the complex and evolving challenges in the energy sector,” he said. “By enabling secure and timely access to reliable data, we strengthen our capacity to craft smarter energy policies, deliver better public services, and respond decisively to the needs of consumers and stakeholders.”
Present at the signing was ERC Chairperson Monalisa Dimalanta, who emphasized the data-sharing initiative, which would focus on the electric power industry as well as the integration of RE in the country.
The cooperation also includes power generation, grid and transmission development, distribution systems, market operations, off-grid electrification initiatives, and other benefit-sharing mechanisms.
“Data is at the core of responsive regulation. This agreement allows the ERC to better assess system performance, anticipate emerging issues, and design regulatory interventions that truly reflect conditions on the ground. This partnership will also make it easier for our stakeholders to comply by avoiding duplicative filings through streamlined processes across energy agencies,” Dimalanta noted.
“More importantly, this institutionalizes a culture of openness and cooperation that is essential to achieving our shared goal of delivering reliable and affordable electricity to all Filipinos,” she highlighted.
The DOE assured that all data will go through necessary defined protocols to ensure transparency, accountability, and data governance.
