Power Plant Engineering: An Overview

Fundamentals of Power Plant Engineering

• EE 414 and EE 414D cover the fundamentals of power plant engineering, focusing on lecture and design.
• The material is tailored for a Bachelor of Science in Electrical Engineering, 2nd Semester, from 2024-2025.

Overview of the Generation and Supply Sector

• An overview is provided into the energy and electric power landscape in the Philippines, specifically looking at the Generation and Supply Sector.

Philippine Electric Power Industry

• Energy Literacy Ph is also a source of information on the electric power industry.

Republic Act No. 9136 (EPIRA)

• Republic Act No. 9136, also known as the "Electric Power Industry Reform Act of 2001," was approved on June 8, 2001.
• It provides a framework for restructuring the electric power industry.
• The scope includes the privatization of NPC assets, transitioning to a competitive market, and defining roles for government and private entities.

EPIRA and the Philippine Power Industry

• The EPIRA (Electric Power Industry Reform Act) impacts the power industry.

Department of Energy (DOE) Mandate

• The Department of Energy is tasked with preparing, integrating, supervising, and controlling plans, programs, projects, and activities to ensure sustainable, stable, secure, sufficient, accessible, and reasonably priced energy.

Electric Power Industry Management Bureau

• This bureau oversees the implementation of electric power industry restructuring to create a competitive, market-based environment and encourage private-sector participation.
• It aims to ensure adequate, efficient, and reliable electricity supply.
• It creates plans and strategies related to rural electrification.

Power Planning and Development Division

• This division formulates policies, plans, and programs for generation, transmission, distribution, and the supply of electricity, ensuring effective implementation.
• It includes sections such as Power Development Planning, Transmission Development Planning, and Missionary Electrification Development Planning.

Power Market Development Division

• This division develops policies, plans, and programs for the Philippine power market, ensuring a competitive electricity market at national and regional levels.
• It consists of the Power Market Research and Development Section and the EPIRA Monitoring and Coordination Section.

Rural Electrification Administration and Management Division

• This division creates policies, plans, and programs focused on energizing the country and providing financial benefits to host communities.

Generation Sector Defined

• "Generation of Electricity" is defined as the production of electricity by a generation company or a co-generation facility, as per the Act.
• A "Generation Company" is any entity authorized by the ERC to operate electricity generation facilities.
• A "Co-Generation Facility" produces electrical or mechanical energy, along with useful thermal energy like heat or steam, for industrial or commercial purposes.

PSALM Corporation

• The Power Sector Assets and Liabilities Management Corporation (PSALM) manages existing generation assets, IPP contracts, real estate, and other disposable assets, as well as NPC's liabilities.
• PSALM is responsible for the privatization of NPC's assets.

NPC (National Power Corporation)

• The National Power Corporation is the government's power generation arm.
• It provides power generation and delivery systems in areas not connected to the main transmission system through the Small Power Utilities Group (SPUG).
• NPC also manages watersheds and maintains government-owned generation assets.

Supply Sector Defined

• "Supply of Electricity" refers to the sale of electricity by a party that is not a generator or distributor, within the distribution utility's franchise area, using the utility's wires.
• "Supplier" is any person or entity authorized by the ERC to sell, broker, market, or aggregate electricity to end-users.
• An "Aggregator" consolidates electric power demand from end-users in the contestable market, then purchases and resells electricity on a group basis.

PEMC (Philippine Electricity Market Corporation)

• The Philippine Electricity Market Corporation (PEMC) is a non-stock, non-profit corporation founded in November 2003.
• PEMC governs the Wholesale Electricity Spot Market (WESM).

Independent Electricity Market Operator of the Philippines

• This organization operates the Philippine Wholesale Electricity Market.
• It also acts as a Central Registration Body for Retail Competition and Open Access.

Market Operator Role

• This entity is responsible for running the WESM according to the WESM Rules.

End-user Definitions

• An "End-user" is any person or entity that requires the supply and delivery of electricity for its own use.
• The "Contestable Market" includes electricity end-users who have the choice of supplier, as determined by the ERC.
• The "Captive Market" includes electricity end-users who do NOT have a choice of supplier, with that status also determined by the ERC.

Energy Regulatory Commission (ERC)

• The ERC is an independent, quasi-judicial, and quasi-legislative body.
• The ERC regulates and monitors the Philippine electric industry, ensuring restructuring, modernization, and consumer protection.

Republic Act No. 9513 (Renewable Energy Act of 2008)

• This act promotes the development, utilization, and commercialization of renewable energy resources.
• Scope: Framework for accelerated development and advancement of renewable energy resources, and a strategic program, will increase utilization.

Philippine Renewable Energy

• Energy Literacy Ph is a source of information on renewable energy.

National Renewable Energy Board (NREB)

• The NREB advises the DOE on policies and monitors Republic Act No. 9513, the Renewable Energy Act of 2008.

Renewable Energy Management Bureau

• This bureau formulates and implements policies, plans, and programs.
• The goals include the accelerated development, transformation, utilization, and commercialization of renewable energy resources and emerging energy technologies.

Biomass Energy Management Division

• This division formulates and implements policies, plans, and programs.
• The goals include the accelerated development, transformation, utilization, and commercialization of biomass energy resources and emerging energy technologies.
• The division has a Technology Development Section, and Evaluation, Registration and Monitoring Section.

Geothermal Energy Management Division

• This division formulates and implements policies, plans, and programs.
• The goals include accelerated development, transformation, utilization, and commercialization of geothermal energy resources.
• It includes a Resource & Technology Development & Evaluation Section, as well as an Evaluation, Registration and Monitoring Section.

Solar & Wind Energy Management Division

• This division formulates and implements policies, plans, and programs.
• The goals include the accelerated development, transformation, utilization, and commercialization of solar and wind energy resources.
• This division has a Policy and Technology Section, as well as a Promotion and Commercialization Section.

Hydropower & Ocean Energy Management Division

• This division formulates and implements policies, plans, and programs.
• The goals include the accelerated development, transformation, utilization, and commercialization of hydropower and ocean energy resources, including emerging technologies.
• This division has a Resource and Technology Development Section, as well as an Evaluation, Registration and Monitoring Section.

National Renewable Energy Board - Technical Services and Management Division

• This provides support to the NREB and serves as a one-stop shop for renewable energy.
• Includes the Administrative Section, Information and Technical Research Section, and Renewable Energy Registrar Section.

Renewable Portfolio Standards (RPS)

• Renewable Portfolio Standards are a market-based policy.
• The standards require electricity suppliers to source a portion of their energy from eligible renewable energy resources.

Renewable Portfolio Standard (RPS) Implementation

• All stakeholders in the electric power industry must contribute to the growth of renewable energy.
• The National Renewable Energy Board (NREB) must determine the minimum percentage of generation from eligible renewable energy resources.
• The NREB must determine the sector to use RPS on a per grid basis within one year of the Act's effectivity.

Electricity Bill Understanding

• Energy Literacy helps people know how to read an electricity bill

Unbundling of Rates and Functions

• Within six months of the Act, NPC must file its revised rates with the ERC.
• NPC rates must be unbundled between transmission and generation.
• Rates must reflect the costs of each service.
• Inter-grid and intra-grid cross subsidies are to be removed.

Distribution Utility Rate Filing

• Within six months of the Act, each distribution utility must file its revised rates for ERC approval.
• The distribution wheeling charge must be unbundled from the retail rate.
• Rates should reflect service costs.
• Inter-class subsidies should be removed for distribution retail wheeling and supplier's charges.

ERC Notification and Compliance

• Within six months of revised rate submission, the ERC must notify entities of approval.
• Electric power industry participants must functionally and structurally unbundle business activities and rates, ERC implementation is full compliance.

Breakdown of Charges

• A guide explaining different bill charges is explained.

Generation Charge Explained

• Generation Charge covers the cost of power purchased from Independent Power Producers (IPPs).
• It also includes power producers with Power Supply Agreements (PSAs) like those with Meralco.
• It factors in power producers using Renewable Energy and the Wholesale Electricity Spot Market.

Transmission Charge Explained

• This charge covers the cost of electricity delivery from power suppliers.
• Suppliers are located in other provinces or remote areas.
• Charge is paid to the National Grid Corporation of the Philippines (NGCP).

System Loss Charge Explained

• This charge is for the cost-recovery of power lost due to technical and non-technical system losses.
• The maximum level of system losses that can be recovered by private distribution utilities is 9.5% per Republic Act No. 7832.
• This was reduced to 8.5% starting in 2010 under ERC Resolution No. 17, Series of 2008.

Distribution Charge Explained

• This is the only portion of the bill that goes to Meralco.
• It covers the cost of developing, constructing, operating, and maintaining distribution system.
• The system delivers power from high-voltage transmission grids to commercial, industrial, and residential end-users.

Discounts Explained

• Discounts are available for marginalized, low-income customers and senior citizens who consume 100 kWh or less per month, up to 5%.
• This amount is subsidized by all other customers.
• Tax Recovery Adjustment Charge is included under Subsidies.

Metering Charge Explained

• Charge for the cost of reading, operating, and maintaining power metering facilities and associated equipment.

Supply Charge Explained

• Charge for rendering service to customers, such as billing, collection, customer assistance, and other associated services.

Understanding Your Bill (For Homes) - Meralco

• A home electricity bill summary provides an overview of the energy consumption the billing charges are assessed on.
• Monthly Consumption Tracker has up to 24 months of data in order to to compare consumption over periods.
• Monthly temperature averages affect consumption (fans, refs, air conditioning in summer).
• Average monthly and daily consumption information is displayed in kWh and pesos.

Electricity Bills Part 2

• The most important details are front and center in a blue field.
• The Customer Account Number (CAN), does not expire, is important for service.
• Bill Summary is comprised of remaining balances, charges and instalments.
• Distribution charges are paid direct.

Important Bill Information

• Everything that is not distribution goes to various other utilities.
• Included ad blocks for Meralco information.
• There is also QR code access to your account and payment.

What You've Paid

• Details recent payments applied to this service, excluding overpayments.
• Information will include payments posting data, channels and amount

Metering information

• This indicates your meter reading results for the current month.

Rate Components

• Charges for the bill are listed to include government taxes and value added tax.
• Additional information is provided to understand computations and electricity load.

Feed-In Tariff System

• To accelerate emerging energy resource output wind, solar, ocean, run-of-river hydropower and biomass energy will get tariff.
• The ERC and NREB will formulate the appropriate tariffs for the Act.

Feed-In Tariff System Details

• Connections will be prioritized for all the tariff options
• Purchase of RE will be a priority.
• Tariff prices will be fixed.
• Rates to apply to RE will be standard set by DOE.

TRANSCO and Electric Transmission

• Owners of all electricity transmission infrastructure.
• Responsible for planning, construction, operation and maintenance

"Net-Metering" definition

• System with a distribution grid user with a two-way connection to the grid, charged only for net electricity consumption, and credited for contributions to the electricity grid.

Net-metering for Renewable Energy

• Distribution utilities shall enter into net-metering agreements with qualified end-users who will be installing RE systems with any considerations considered.

Net-Metering and ERC

• The ERC, in consultation with the NREB and industry participants, will establish the net-metering process.
• The interconnection standards, pricing and arrangement are essential.

Utility Entitlement

• Utility is can claim rewards and recognition based on net-metering performance.

The End Goals of net-metering

• Energy is provided as successful as possible.
• Physical connectivity is key.
• Wording adheres to Grid and Distribution Codes.

Open and Access

• Retail electricity will be available post 3 year mark of law.

5 Required Implementation Points

• Establishment of the wholesale electricity spot market
• Approval of unbundled transmission and distribution wheeling charges
• Initial implementation of the cross subsidy removal scheme
• Privatization of 70% of generating assets of NPC
• Transfer of 70% energy from NPC to the IPP.

Open Access Market - 1MW

• Market is open for any consumption at 1MW at at least the preceding 12 months.
• Thresholds adjust to 750kW after 2 years from the initial period.

Open Access and ERC

• ERC performs and evaluation annually and adjusts price point.
• Electric cooperatives to get open access after 5 years.

Green Energy Option Plan

• DOE create green energy choice
• Consult NREB on choices
• Rules set DOE set

End Users - Green Choice

• Get DOE approval for this to be OK
• RE need approval via Distro's

Green Goals

• TRANSCO and all can help make choices work
• Electric bills will display info.

PNOC mission

• Goverment owned company, will help make goals possible.

PNOC - Exploration and Coal

• PNOC will find ways to obtain resrouces

PNOC Renewables

• PNOC works with NREB.

Congressional Committee

• Looks ar the resources regarding oil based, or more green.

Act to Look Into

• Further analysis and adjustments in policy based on Joint Congressional.