Reliability of Philippine Power Systems

Reliability of power systems define the utility's capability to minimize outage frequency and duration. For regulatory purposes, power system reliability indices are evaluated for performance based regulation (PBR). In the Philippines three performance indicators on system reliability are among the indices evaluated to assess transmission and distribution electric systems for regulatory years involved. System Average Interruption Frequency Index (SAIFI), System Average Interruption Duration Index (SAIDI) and Customer Average Interruption Duration Index (CAIDI) are the indices required by Energy Regulatory Commission (ERC) from the utilities and whose formulas are given below. The data presented herein are acquired from the ERC website and from the National Electrification Administration (NEA) website.

The transmission electric system reliability performance are provided below in the following two figures. The first five years show separated indices for the three regions while the next five years show combined transmission performance for the whole nation. It is revealed from the figures that transmission system SAIFI and SAIDI are lower for the last five years which indicate that outage frequency and duration were minimized in the bulk power system.

The next three figures illustrate the reliability performance of four Distribution Utilities (DUs) in Mindanao. The SAIDI presented here are said to be "Planned" SAIDI, which I assume incurred during scheduled maintenance outages of the DUs. For SAIFI and SAIDI, Cotabato Light and Power Company, Inc. (CLPC) performs better than the other DUs. For CAIDI, Mactan Electric Company, Incorporated (MECO) and Cagayan Electric Power and Light Co., Inc. (CEPALCO) provides minimum customer outage duration. What is interesting is that MECO and CEPALCO reported the same CAIDI values for different four year intervals. The CAIDI formula above does not apply to the CAIDI values as the SAIDI are "Planned". The DU reliability assessment here does not consider the GWh sales and number of customers served of the DU which I believe has an impact to the DU reliability performance. This kind of evaluation is slated in the upcoming articles.

NEA reports a reliability criteria for Electric Cooperatives (ECs). The highest score for this aspect is 5.0 as defined by NEA, which is not reported in their website. Figure below shows that at least four ECs perform up to the par of the NEA reliability criteria.

Demand-Side Management Practices

The electric power system as driven by economic market forces experiences intensive utilization. To keep electric power systems continue to operate in a reliable and secured manner, resources aside from power generation are needed. Demand-side management has been taking its place in supporting power system operations and planning in the deregulated era. Significant reliability and financial benefits are derived in utilizing various forms of demand-side control.

Demand-side management or control types can be categorized in the order of contribution to power system security and electricity market efficiency.

• Time of Use Pricing (TOU) - this approach shifts power consumption from peak periods where the probability of high market prices and transmission congestion are obviously high and expected.

• Real Time Pricing (RTP) - this demand-side control strategy allows the load to reallocate energy utilization to lower market price hours and when power transmission usage is lower.

• Demand-side Bidding - this category assist the system operator for maintaining generation-load balance and in managing of zonal congestion. With this, it tends to lower the operating cost of the consumer and demand-side assists in alleviating generation resources shortage.

• Demand-side as Ancillary Services - demand-side is utilized as system reserves through emergencies especially when no other possible option provides solution to mitigate existing system-wide operating concerns. In this case, demand-side can be called to support the system operation as Responsive Reserve, Non-spinning Reserve, Regulating Reserve, or as a Replacement Reserve. Most often, the demand is reduced during periods of critical generation reserve margins and when electricity market prices are high due to generation shortage.

• Direct Load Control - this strategy employ the usage of automated control to reduce or curtail demand consumption during the occurrence of price spikes or during summer periods.

• Interruptible Load Program (ILP) - demand is reduced or cut-off from the grid to maintain secured system operation during emergencies where system continuous service can be put at risk. Some system operators utilize interruptible load for economic benefits and eliminating system operating constraints.

Solving Non-Technical Losses Problem by Technical Methods

Non-technical losses in distribution systems comprised about 2-3%, my estimate, of the total system losses. Total distribution system losses equals technical losses plus non-technical losses.

In my experience and some readings, I believe that non-technical losses can be minimized or mitigated by utilizing non-technical strategies.

1. Modeling and benchmarking technical losses thru computer simulations - if a DU can measure the technical losses incurred in operating its distribution system with the variation of supply and demand using a computer program, then the DU is in a position to quantify and identify probable nodes of sources of non-technical losses in the system comparing power/energy output from electricity meters. This approach may take some technical challenges, especially with the database development, but if accomplished the DU will have in its hands a tool that can predict energy efficiency of its distribution system franchise.
2. Installation of totalizing meters - the measurement of energy output from a certain distribution feeder and laterals thru totalizing meters can be an effective way to guard pilferage along the feeder or lateral. Some DUs even install totalizing meters after the distribution transformer feeding a secondary feeder. The accuracy of these totalizing meters must be accounted when investigating or assessing energy input and output among electricity consumers.
3. Statistical analysis of electricity meter readings - ample data from electricity meters can be analyzed statistically over time to estimate significant deviation from usual meter readings. This will help the DU to keep track the energy usage of its consumers and will have a benchmark in case significant meter reading deviation especially at the totalizing meters is observed. Statistical monitoring of energy consumption per sector, per class and geographical set-up must be employed and statistical evaluation of meter readings will be in vain if electricity meters are not up to the standard accuracy. Energy consumption bands must result from the statistical evaluation to confirm anomalous meter readings. Upgrading of electricity meters to meet standard accuracy must be conducted to support reduction of non-technical losses thru statistical analysis.
4. Technical training of DU personnel must be given plus enhancing employees’ loyalty and political will to eliminate pilferage in the distribution system must be considered. DU personnel who play an important role in mitigating non-technical losses must have deep loyalty to the company and must have ample technical knowledge in combating electricity pilferage.

Power Quality Problems Always Exist

The Philippine Distribution Code (PDC) has Power Quality (PQ) performance regulation for Distribution Utilities. In Section 3.2 of the PDC, it provides generalities and specific limitations for quality regulation. I have copied section 3.2.1.2 from the PDC for the purpose of this article, see below.

In this section, the PDC points to the identification of a PQ problem in the distribution system by classifying presence of quality parameters. Going beyond this section are specified limits of the parameters stated above which clearly identifies the existence of a PQ problem. It is interesting that this PDC section identifies PQ problems where some of the classifications always exist in operating a distribution system. My rationale are the following:

• Power system frequency is seldom at its nominal value of 60 Hz. The continuous variation of loads impact the maintenance of frequency at 60 HZ. Item (a) of the said section implies that a PQ problem due to frequency deviation always exists.
• Harmonic frequencies always exist in distribution systems. The issue if these harmonics are acceptable or not is another facet. But voltage harmonics and current harmonics are always present in a power system due to the popular usage of electronic-based devices and equipment. Item (c) of the said section above implies that a PQ problem exist due to the presence of harmonic frequencies, whether tolerable or not.
• Items (c) and (d) of the said section are combined definitions for voltage unbalance. In a practical distribution system, voltage unbalance exist at all nodes due to the two-phase and single-phase laterals in the three-phase distribution feeder and unequal loading of the three-phase distribution lines. If this unbalance in voltage is acceptable of not is about the magnitude of the unbalance. If we follow the thesis of the said items, then a PQ problem exist even at acceptable levels of voltage unbalance.

The PDC definition for the existence of a PQ problem, with respect with the section above, gives us an understanding that a PQ problem exist not withstanding the magnitude of frequency deviations, harmonic frequencies and voltage unbalance magnitudes.

Less Transmission Capacity equals High Electricity Market Prices

Recent postings of Wholesale Electricity Spot Market (WESM) electricity spot prices showed remarkable increases due to the damage of one 600MVA 500kV/230kV transformer at San Jose substation in Bulacan. The damage 600MVA transformer is one of four 600MVA 500kV/230kV power transformers in the power substation. The San Jose 500kV substation delivers power generation from north side of the Luzon grid to the load center in Metro Manila, see figure below with San Jose substation inset. The “cheap” generation output in north of Luzon flows thru this transmission highway together with the 230kV in Central Luzon (Mexico and Concepcion substations). Technically, the 500kV lines along San Jose has greater capacity than the 230kV lines in Central Luzon. As a 600MVA transformer is being replaced, power transmission from upnorth of Luzon will be congested thus “cheap” power generation can not be availed in the load center.

As a result, the WESM prices soared. Figure below shows comparison between a Friday summer day with a Friday rainy day. Usually demand is higher during summer season than rainy season, which is given in the illustration. But the load weighted average price (LWAP) between the two days in comparison shows the impact of the damage transformer in the San Jose 500kV substation.

The interaction of the electric power system and the electricity market prices brings us into the following initial conclusions:

• Transmission system capacity is needed for competition of generation in an electricity market. Even if there is a good amount of margin between generation and demand without ample transmission capacity, electricity spot prices have no direction but to go up.
• A power system, like the Luzon grid, with a load center (Metro Manila) away from “cheap” generation will surely experience electricity market price spikes when transmission capacity is limited.
• The need for bilateral contracts for generation procurement plays an important part in a restructured power industry. To be hedged with high electricity market prices, energy buyers must lock into these contracts, considering stated conclusions above, to cushion their energy companies from impacting their financial standing.
• Demand side management, which has not taken its place in the Philippines, must be considered in an electricity market with a transmission system as described above. Peak shaving and other demand side resources will surely avert electricity price spikes by postponing usage of a congested transmission system.

Let’s leave this discussion for now with those initial conclusions. Bottomline is this, less transmission capacity equals high electricity market prices.

Regulating Continuing Education

The Institute of Integrated Electrical Engineers (IIEE) and the Borad of Electrical Engineering (BEE) of the Professional Regulation Commission (PRC) announced the return of Continuing Professional Education (CPE) effective January 2009. CPE units are requirements for renewing electrical engieering practice license.

CPE has been an issue among licensed electrical engineers and electricians in the Philippines for some reasons;

• It takes some time from their job
• It pays much
• No current local technical seminars advance what they learned in college or in practice

The certification of continuing professional growth is seen as business of IIEE by a significant majority of its members.

In the light of this issue, I am having second thoughts why CPE has to be back. With the frenzy of using the internet, there are a lot of free CPEs around the web. And not undermining the seminars that are offered at IIEE or at National Engineering Center (NEC), these free CPE on the world wide web are very practical.

The following are free CPE seminars that I find very effective and are updated frequently:

• Power System Engineering Research Center (PSERC) teleseminars
  
• Electrical Construction and Maintenance (ECM) webinars
  
• Pennsylvania, New Jersey, Maryland (PJM) Interconnection Training
• National Programme on Technology Enhanced Learning
• Transmission and Distribution World webinars
• Leonardo Energy webinars

These are only some of good sites to visit when needing CPE. More so, some engineers and electricians prefer personal education. These are people who continually read books or do their own research.

IIEE/BEE must recognize the changing dynamics of giving or requiring CPE among its members, the seminars they are currently offering has been there ever since I was a student. It would be a welcome development if IIEE/BEE will render, prepare or propose seminars on designing “green” electrical systems, energy-efficiency, electricity markets, power system planning and operation in a restructured electric industry or electricity delivery technical and economic regulation.

Wind Power Low Voltage Ride Through

Wind power generation has taken its place in its share of electric power generation around the globe. Wind power generation normally utilizes induction generators for power production. In this case, these type of generators do not need synchronization when connecting or reconnecting to the electric grid or to any point of interconnection (POI).

When planning wind power integration, power system stability simulations are conducted to ensure system reliability with the wind power connection. In stability analysis, it is customary to analyze synchronization of generators’ rotor angles in the grid to evaluate system or generator stability. This practice is not applicable to wind power with induction generators based from the above discussion.

For power system stability, it is industry accepted to analyze low voltage ride through (LVRT) of a wind power generation rather than rotor angles. LVRT requires wind power plants to remain connected to the grid in the event of a worst short circuit which maybe nearest to the wind power plant. This is evaluated by observing the voltage at the POI of the wind power plant.

The figure below is a copy of Federal Energy Regulatory Commission (FERC) LVRT requirement. The plot shows the beginning of the voltage sag, the condition for the wind power plant to remain connected to the grid and the condition where the wind power plant is allowed not to remain connected to the grid. The voltage magnitude, plus the time duration, at the POI serves as the barometer if the wind power plant must stay connected or not.

Figure below is an illustration of LVRT requirements of different Transmission Operators and Transmission Owners relating to wind power plant interconnection. This plot is taken from this site. The figure tells us that different grids have different requirements for wind power LVRT. This maybe due to the system stiffness or inertia, system demand or wind power penetration. Moreover, some of the LVRT requirements were benchmarked from actual measured LVRT of wind power plants during system fault events.

Figure below is another interesting LVRT requirement in North America at the Western Electricity Coordinating Council (WECC). This plot is taken from this site. This illustration shows not only LVRT but also high voltage ride through (HVRT). Within the no-trip envelope, the wind power plant must stay connected to the grid but outside this condition the wind power plant can be disconnected from the grid.

The Energy Regulatory Commission in the Philippines has yet to develop voltage ride through requirement for wind power plants. There are existing and proposed or queued wind power generation located in the northern part of Luzon that maybe needed to comply with a developed LVRT. Moreover, LVRT policy can be applied not only to wind power generation but also to conventional power plants. Development of LVRT for wind power plants must be conducted for wind power generation to safeguard the stability and reliability of the power grid.

Conflict in Quality Regulation of Distribution Utilities

The Philippine Distribution Code (PDC) requires all User connection points that all Power Quality (PQ) requirements under PDC Section 3.2 be complied with. The PDC section 3.2.3.4 stresses this policy for voltage variations, see below. There are other similar statements for other PQ indices to be complied along section 3.2 of the PDC.

For new distribution system interconnection, the PDC points to the same section 3.2 that new connection points must have PQ within limitations specified in Section 3.2. In this case, the Distribution Utility (DU) must ensure that these PQ limits are complied with. See section 5.2 and further below.

The Energy Regulatory Commission (ERC) under its Work in Progress provides a seemingly conflicting objective with the PDC, as the Section 4 of the Guideline for Monitoring of PQ standards for DUs allows the DU to have 95% of connection points along a given distribution feeder to comply with section 3.2 of the PDC, see figure below. This means that 5% of the connection point can be accepted not to comply with the said PQ performance requirements. Practically, if the DU feeder has 100 connection points, 5 of those connection points can be operated not following the PQ limits specified in the PDC section 3.2.

The conflicting objective in these regulatory documents is clear. One document, the PDC, specifies that the DUs must comply with PQ limitations per section 3.2 in all connection points. On the other hand, the Guideline points that only 95% of those connection points must be ensured by the DU to have PQ level in accordance with the PDC section 3.2.

The ERC and DUs must adhere the PDC since this is the “code” of operating, financing and planning distribution systems. The Guideline must be reviewed as this is a Work in Progress. If the Guideline supersedes the PDC, then the PDC states that a PQ problem exists in the distribution system as section 3.2.1.2 below stresses this point.

Bring Down Power Rates by UP

As a Filipino living outside the Philippines, I have missed some research development like the study presentation by University of the Philippines (UP) professors on Reducing Power Rates in Generation. I have so much respect for the researchers since some of them have been my professors in my unfinished PhD degree in power systems.

Their study focuses on economic generation dispatch focus on MERALCO's power procurement. The study presents different cases or scenarios where MERALCO can procure from different power suppliers; NPC, IPPs, and WESM. In each case, the reduced power cost is reported and highlighted. This study is even utilized by one of our senators.

I agree on the principle of lowering power cost in anyway and anytime. Every effort on lowering power rates is my kind of thing.

But I am not sure if a DU which might have some purchase contracts with some IPPs will agree not to abide by those contracts. And note that these legal contracts go thru regulatory hearings.

I am not sure that the study focusing on rate economics provided a very firm ground on transmission and distribution capacity constraints of power procurement. DUs economic operation is coupled with technical constraints of the power system.

I am not sure the study related to uncertainty of demand and generation availability as they analyzed past data of the power rates. The variation of demand and generation reliability has much impact on power procurement.

I am not also sure that DUs participation in WESM is not beneficial for consumers. Most of the time, there are several hours of the day that the WESM spot price is zero! See example figure below. Thus, it can be beneficial to participate in the WESM.

Moreover, the senator said that the study is reliable since the researchers have developed a computer-simulation model. I am not sure if the senator is well versed on this. Power system engineers doing technical or economic studies have been using computer-simulation models for the past n years. The reliability or usability of a research study is not based on whether it was done using a computer-simulation model or by hand-manual computations but on the basis of its practicality.

There are a vast strategies to lower power procurement cost by DUs, in the end, legal contracts, power system constraints, uncertainty in demand and generation, and regulatory policies must be considered.

Technical Performance of an Electric Cooperative supplied with Wind Power

Wind power supply has further implications on system reliability because of its variability and can impact power quality in its nature of power production since it uses power electronics for power control that can produce harmonics and with its variability which can result to unacceptable voltage variations and voltage flickers. Ilocos Norte Electric Cooperative (INEC) source its power supply at specific times from the NorthWind Power Development Corporation.

INEC sources its power requirement to supply its franchise demand from National Power Corporation (NPC), NorthWind and Wholesale Electricity Spot Market (WESM). This is an economic operations strategy by INEC. INEC is fed by all these power suppliers from the grid via bulk power transformers to its distribution franchise.

National Electrification Administration (NEA) reports Electric Cooperatives (EC) scorecard for the year 2006. From this report, INEC performs very well technically as shown in the figure below. Aside from reliability and project implementation, INEC performed up to the expected par with all the other technical operations performance requirements. The uncoupling of power supply, voltage transformation thru transformers which go together with INEC’s own technical intervention within their distribution franchise, from the wind power to the INEC distribution system aids in delivering power with such a high quality of supply and technical performance. Overall, the analysis shows that an electric distribution system fed by a wind power plant can be operated up to the level of technical criteria required by the NEA or by Energy Regulatory Commission (ERC).

Simple Method for Selecting Overhead Distribution Line Conductor

Distribution Utilities (DUs) when planning for their distribution system, are faced with various options and constraints. One of the DUs’ process in system planning is choosing the right size of overhead distribution conductor for a given load, voltage level and expected load growth just to name a few. Most of the time, DUs have a set of standard sizes of conductors in the stock shop ready to be utilized for meeting additional demand or has a set of policies what size of conductor to be used for level of voltage or type of load. These practices do not follow that given the new conductor installation, DUs comply with various performance regulation.

In the performance regulation of DUs, it is important to meet the following:

• Supply the voltage within allowable limits - normally this is between 0.90 to 1.10 per-unit voltage.
• Minimize losses - to select a conductor is to ensure that as the power is being delivered, lesser line losses are produced.
• Minimize cost of conductor - economic regulation addressed in planning that DUs as much as possible to lower cost and at the same time operate within performance criteria.

In addition, the DUs must maximize power delivered, i.e. - the DU sees to it that the demand will be supplied with the power it needs given any time. Maximizing power transfer enables maximum utilization of the asset.

In this blog, consider a load of 200 amperes at 13.8kV level and selection between conductors ACSR sizes of 1/0 to 4/0 is to be determined for a line length of 1000 meters. The cost of conductors are derived from National Electrification Administration (NEA) website. The variations of voltage versus losses, cost of conductors versus losses and power delivered versus losses are plotted below. The conflicting patterns of voltage, cost of conductors and power delivered versus line losses are evident from the figures. The size of the conductor to be selected must be near the intersection point which minimizes the parameters involved. In this example the appropriate conductor size, the nearest conductor size to the intersection of the curves must be chosen, is ACSR 3/0.

Benefits of System Loss Reduction

Aside from impacting or not impacting electricity rates, system loss reduction has the following benefits:

• Reduction of fuel emissions due to lesser use of fossil-fuel generating plants - this has societal impact as it cover environmental concerns.
• Utility system capacity savings - decrease in losses provides released extra capacity for the distribution lines and transformers.
• Promotion of Energy Efficiency - it will be noted that the Distribution Utility (DU) is an energy-efficient electric company as it tries to decrease its system loss.
• Improvement of system voltage profile - the utility is regulated to supplying a range of voltage level and reduction of losses will produce a marginal system voltage quality that may be acceptable. This will also provide good power quality at the convenience outlets of consumers allowing their electric equipment/appliances to operate without mis-operation or loss of life.
• Increase Utility Commercial Appeal - a DU aiming at system loss reduction gets an added commercial appeal in the restructured power industry. This is important in the changing environment of the power industry, have you seen MERALCO TV commercials?

There is an optimum level of system loss reduction unique for all Distribution Utilities (DUs) where further reduction of losses will not result to further reduction of operation cost but more investment expenses. On the other hand, as demand rises in a distribution service franchise, technical losses and non-technical losses (utility own use) will at some point come with the demand increase. The equation of generation equals losses plus demand holds true. This is revealed by Philippine Power Statistics as shown in the figures below (the values include transmission and distribution losses, but this does not negate the point) :

Finding ways to reducing system loss must be a continuing program since it always provide benefits to the DUs and electric consumers.

Getting Lost with System Loss

The Energy Regulatory Commission (ERC) is calling for comments from various stakeholders on a new resolution they are proposing on reduction of distribution system losses incurred by Distribution utilities (DUs) which are Private Utilities (PUs) and Electric Cooperatives (ECs) in their operation of their service areas. Figure below is an extraction from the ERC document on the resolution.

From the illustration, the regulated system loss caps have been long withstanding for about eight years. The 9.5% and 14% loss caps for PUs and ECs respectively, are about to celebrate their ninth birthday until this new resolution on system loss caps reduction which is aimed to be implemented in January 2009 billing. The proposed 8% cap on the PUs might be tight since presently MERALCO operates its vast distribution system following a 9.5% loss policy. There are other PUs but benchmarking with MERALCO is a sure test if the other PUs can comply with the proposed 8% cap. The proposed 11% system loss cap on ECs is a product of National Electrification Administration (NEA) media declaration on system loss saying that by 2009 the national average for system loss for ECs will be 11%. The 2006 NEA scorecard does not report this 11% but points that about 53 out of a total of 84 ( I thought there are total of 98 ECs) ECs comply perfectly with system loss reduction.

Reduction of system loss caps always provide good benefits for both consumers and the electric distributor, there is no doubt on this and the currently applied caps should have been in Grade 3 in the present school year. But giving pressure to the DUs to comply within five months can be challenging. Given the facts for both PUs and ECs, the proposed resolution will be an expected regulatory debate in the ERC hearings. Aside from decreasing system loss, DUs look into improving system reliability and quality of supply in their planning and operations which I believe are of equal weight with system loss. If this resolution is implemented, DUs might get lost with reducing their system loss.

Framework for Operation Research Instruction for Future Electric Power Engineers

ABSTRACT

Philippine electric power industry has put a new face in itself: deregulation. With its new structure, optimization of planning and operations of electric power systems will be vital. Optimal performance of the power network will be highly considered may it be economics and/or technical. This paper presents a framework for Operations Research (OR) instruction for future engineers of electric power systems. The key to optimized electric network in the coming years is to educate and train electrical engineering students solve power system problems utilizing OR. The manuscript is comprised of appropriate OR solutions to power system problems. The presentation will be useful for teachers giving OR courses to students of electrical engineering.

See Full Paper - Framework for Operation Research Instruction for Future Electric Power Engineers

Philippine Electric Cooperative Analysis : Distribution, Supply and Metering (DSM) and Annual MWh Sales

Economics tells us that having more sales tend to bring down the prices. The components of electric distribution tariff consists of different items. Distribution, Supply and Metering (DSM) Charges are among basic fees that are collected from residential consumers. Figure below from the Energy Regulatory Commission (ERC), illustrates the components of the total residential distribution tariff.

In this blog, we show that increasing the electric energy sales tend to reduce the DSM charges of the Electric Cooperatives (EC). The next figure is derived from the EC data and is analyzed thereof. It is shown that the more energy sales produced by an EC, the lesser DSM fees the consumers pay. This is due to the fact that the path of electric power flow to more consumers is being utilized efficiently. More consumers means more power to be distributed, supplied and metered using the same electric distribution circuits. EC #95 having more sales charges the lowest DSM fee while EC #3 charges the highest DSM fee having the lowest energy sales. It is interesting that EC #94 charges low DSM fees while providing not so much high energy sales. This may be due to the distribution system configuration of the said EC where is utilized efficiently.

What Happened Here?

Historically, Metro Manila carries a whopping 50 to 60 percent of the total load of the Luzon Grid in the Philippines. Five bulk power substations deliver power to the metropolitan, if a disruption in the transmission lines connecting the load center to any of these substations, a power blackout is imminent in the area. And when your demand is cut into about half, the tendency is for system frequency and bus voltages to swing throughout the system.

When the crane cut off the transmission line, this produces an open circuit that may divert power flows in the power system and may produce a high impedance as seen by protection devices set to guard against system faults. Normally, the protection devices act faster for short circuit and slower to open circuits, since open circuit produces less fault (overload) currents.

Another TransCo tower in Lanao Sur bombed; 4th in 2 days

FROM MINDANEWS WEBSITE

Another power pylon of the National Transmission Corporation was bombed by unidentified attackers at dawn today, the fourth tower in Lanao to be attacked in less then 24 hours.

Avelino Dawis, Transco Lanao district manager said tower no. 29 in Bubong town was totally destroyed but caused no power interruption in Lanao del Sur and the rest of Southern Mindanao.

Col. Rey Ardo, chief of the Army 103^rd Brigade said the suspects are members of a criminal gang trying to extort money from the state-run power utility.

“The bombings are not related to what is happening in other areas of Mindanao. These are the handiwork of criminal gangs,” Ardo said.

Last Monday, explosives fashioned from 81-mm mortars shells damaged three towers in the towns of Bacolod and Kasuwagan in Lanao del Norte.

Dawis said damage on the towers were minimal except for tower no. 50 in Kauswagan which needed weeks to repair.

Since January this year, at least 20 towers of TransCo have been bombed. (MindaNews)

Philippine Electric Cooperative Analysis : Circuit Kilometer and Annual MWh Sales

In operating and planning electric distribution business, the expansion and demand growth must be intertwined. Expansion won’t happen if not demand driven. Increasing demand must be met by system expansion. The figure below is a graphical illustration of Philippine Electric Cooperatives (PECs) in year 2006, depicting their distribution line in circuit kilometers versus the annual sales in MWh.

From the figure, EC #91 has the longest ckm but does not have the highest sales. EC #96 has the highest energy sales with operating significant lesser ckm of distribution line compared to EC #96. It can by thought that EC #96 might have a service area that is very rural thus it has to erect longer lines to reach consumers. On the other hand, if this is not the case, then EC #96’s investment in distribution lines is not optimized since it has put a longer ckm with a smaller demand.

The regulation of system expansion must meet the rise of demand up to the point that it satisfies reliability and quality performance. However, investment in distribution business must not be overdone because some of these costs are passed on to the consumers.

Comments on the Enforcement of Reliability and Power Quality Standards, and Quality Reliability Index (QRI) for Distribution Utilities

In 2006, I made significant technical comments on the issues of reliability and quality of electric power supply being delivered by Distribution Utilities in the Philippines. Energy Regulatory Commission (ERC) provides the link Work in Progress for the said issues.

The complete documents of comments from various entities can be accessed here - ERC Reliability and Power Quality Comments.

Philippine Energy and Power Independence thru Wind Power

The Philippines in 2007 had installed power generation capacity of about 16,000 MW scattered around the archipelago. Of the various energy sources, renewable energy which were wind and solar accounted for 0.16% of the total capacity. Natural Gas provided a decent 17.78% contribution to the electric power demand. Most of these Natural Gas generation are located for Luzon power supply. Figure below illustrates the installed capacity from the Department of Energy website.

The electric power demand in 2007 was about 9,000 MW and is mostly is Luzon. The problem of Visayas and Mindanao is that even with small amount of demand, generation and transmission is scarce in such areas. The figure below presents the demand scenario for the entire country considering the three regions.

Wind power mapping in the Philippines presented in two studies done by National Renewable Energy Laboratory (NREL) in the United States which are:

• Philippines Wind Energy Resource Atlas Development
• Philippine Wind Farm Analysis and Site Selection Analysis

indicated that wind power in the Philippines can provide 76,600 MW considering good to excellent wind resource while at moderate to excellent wind resource, wind power can supply 173,600 MW. Several assumptions were applied in accounting for these values.

Considering the 2007 electric demand, say wind power potential is harnessed even up to half of its potential (38,300 MW), the country has more generation capacity in this scenario. Pickens Plan suggests that Natural Gas can be utilized for transportation which the Philippines must consider in view of the mapped wind power potential.

If this will happen, the Malampaya gas can be solely used for transportation which will bring down our oil imports and may bring down gas prices thereof. Electricity prices will become lower but transmission system operation will be revised with more wind power generation interconnected to the grid. Investments in wind power will surely come in if the Renewable Energy (RE) bill is enacted into law.

With wind power potential in the country, Philippines can attain energy and power independence.

Analysis of Voltage Unbalance Regulation

Abstract

This paper presents an analysis of the present voltage unbalance regulation in the deregulated power industry in the Philippines. The regulation of voltage unbalance was examined in the light of various standards pertaining to voltage unbalance. The response of three-phase electrical equipment to voltage unbalance is evaluated as per limits of Philippine Distribution Code (PDC). The voltage unbalance limits for transmission and distribution were investigated if it were practical using a numerical simulation of an electric power system. Recommendations and conclusions were drawn as per the analytical outline for voltage unbalance regulation.

See Full Paper - Voltage Unbalance Regulation

$850-M projects waiting for RE bill

$850-M projects waiting for RE bill
By Katherine Adraneda , Philippine Star
Tuesday, July 29, 2008

Some $850-million investments in renewable energy (RE) projects in the country are waiting in the wings, as investors appear to be in a wait-and-see attitude towards the passage of the RE Bill, which is said to be languishing in Congress in the past 19 years.

Former Department of Energy (DOE) chief and current chairman of World Wide Fund for Nature-Philippines (WWF) Vincent Perez Jr. said that such amount of investments on RE projects in the country is foreseen to possibly even double if only lawmakers would approve the proposed measure and President Arroyo would sign it into law immediately.

In an interview at the sidelines of the seminar on RE held over the weekend at Tagaytay City, Perez said these pending investments on RE projects in the Philippines might push between now and 2011.

“These investments are in anticipation of the (passage) of the RE Bill. These projects could perhaps be made in the next five years,” Perez said.

The US Embassy in Manila sponsored the 2008 Tagaytay seminar dubbed “Renewables: Energy for the 21st Century” wherein Perez was the keynote speaker.

Perez told reporters that the $850-million pending investments on RE projects involved the tapping of the country’s geothermal and wind resources.

Perez said the proposed geothermal energy proj-ects consist of a 20 megawatt (MW)-project in Nasulo, Dumaguete; 50MW in South Cotabato; 50MW in the Bicol area; 20MW in Mabini, Batangas; 40MW in Compostela Valley; and 40MW-project in Biliran.

On wind energy projects, Perez said proposed plans include the 80MW and 40MW projects in Ilocos Norte.

Perez explained that estimates on the cost of these proposed RE projects were derived by multiplying the expected power output of the facility by $2.5 million, said to be the prevailing approximation of the price per MW.

Meanwhile, Perez said that a 10MW solar energy project in Mindanao, worth $50 million is also pending, in anticipation of the passage of the RE Bill.

During his speech at the seminar, Perez cited his study titled “A Business Case for Investing in Renewable Power in Emerging Countries,” which has noted that the Philippines is “well-suited to renewable energy.”

Perez said that his study was a result of his “one-year of doodling” at Yale University after leaving the Arroyo Cabinet years ago. His case study was made in May 2006.

“The key factors for RE growth in the country are, of course, first, is RE resources, then RE policy support, attractive tariffs, tight local supply, and isolated grids, which should push us to really become self-sufficient,” pointed out Perez, even stressing that government policy-support on RE is pivotal to the shift and promotion on the use of RE sources.

According to Perez, the “time is ripe” for RE in the Philippines.

This is because RE could insulate the country’s economy from fuel price fluctuation, as RE could also accelerate electrification in off-grid areas, promote sustainable growth, and improve the country’s energy security.

Quoting DOE data on the Philippines’ energy mix in 2007, Perez said that the country has already become 57.2 percent energy self-sufficient as of end 2007, with geothermal as the biggest indigenous energy source, accounting for 21.5 percent.

Perez credited the introduction of the Malampaya Natural Gas Project, located off Palawan, for the increased energy self-sufficiency of the country last year.

Natural Gas accounted for 4.5 percent in the 2007 Philippine Energy Mix.

However, Perez said that the country remains “largely dependent” on imported oil as well as imported coal, which accounted for the 31.8 percent and 11 percent, respectively, of the country’s energy mix last year.

Natural gas and coal are dominant fuel sources for power generation in the country, with 60 percent.

Perez added that renewables contribute 31 percent and oil nine percent to the power generation of the Philippines.

But Perez emphasized that the Philippines is the second largest producer of geothermal energy in the world, “very closely” next to the United States.

Perez also asserted that the Philippines has a great chance of even becoming the top geothermal energy producer in the world in a decade, if only appropriate technology and government support are achieved.

Perez said that the pending RE Bill in Congress is expected to accelerate growth in the RE field in the country, especially since an additional capacity requirement of 3, 620MW is being anticipated for the entire Philippines by 2014.

Specifically, the additional capacity required by 2014 consist of 1, 950MW for Luzon; 820MW for Visayas; and 850MW for Mindanao.

Power Engineering Education for the Restructured Philippine Electricity Industry

Excerpt -

The Philippine electricity industry has been restructured by virtue of the Republic Act No.9136 (R. A. 9136), which is the Electric Power Industry Reform Act of 2001. The centralized operational approach has changed to a competitive framework. This kind of set-up is new to the country. Generation, transmission and distribution of electric energy are now more of a market environment. Generation companies, Gencos, are used to be owned by the state together with the power transmission company, Transco. In the separation of these two components, Gencos will be sold to private corporations and investors. Transco is to be privatized and work as a single entity. Distribution utilities, Discos, will retain their regulated environment and will have private companies and public cooperatives to run Discos. Another important part of electricity deregulation in the Philippines is the establishment and operation of the Philippine Electricity Market Corporation (PEMC). Energy will be traded by power producers and consumers more like a stock market at the Wholesale Electricity Spot Market (WESM).

With the changes happening in the electricity industry, the power engineering education should rightly come with self-transformation. To enable the future power engineers who will handle jobs and positions in the deregulated industry the academe should respond and assess the modifications and improvements that need to be done. Power engineering education feeds the power engineering profession.

See Full Paper -Electric Power Education

Line Losses, Voltage Drop and Voltage Unbalance on Parallel Overhead Distribution Lines

Abstract

It has been a general practice by distribution utilities to parallel overhead distribution lines/feeders in a common right of way and the same pole as they terminate from a common substation. This paper studies the impact of modeling parallel overhead distribution lines. The modeling of this kind of circuits in the regulated status of electric distribution business is important as the modeling can impact line losses, voltage drop and voltage unbalance in the lines. A sample case was set-up and is simulated in two cases; parallel lines modeling and taking the parallel lines individually. The study utilized load flow calculations for analyzing line losses, voltage drops and voltage unbalance. The results showed that line losses are not affected by the kind of modeling applied to parallel overhead distribution lines but voltage drop and voltage unbalance yielded different results in the two cases simulated.

See full paper - Parallel Distribution Lines

Philippine Electric Cooperative Analysis : Circuit Kilometer and Number of Customers

The figure on the right is a graphic illustration of Philippine Electric Cooperative Data for their circuit kilometer of their distribution power lines and number of interconnected customers in their electric systems.

From the figure, Electric Cooperative (EC) number 2 has the lowest number of customers while EC #86 has the most number of customers being served. For the circuit kilometer (CKM), EC #91 has the longest distribution lines while EC #33 operates the shortest CKM.

It is interesting to note that EC #91 has the longest CKM and yet serve a number of customers which is less than the number of customers of EC #86. The area franchise of EC #91 maybe very large and rural that it takes to build, operate and maintain such length of distribution lines with such medium number of electric consumers. EC #86 has the highest number of customers and yet operate a not so longer distribution circuits. It can be hypothesized that the area served by EC #86 is very electric power dense. Same evaluation can be derived with EC numbers 2 and 33.

In this case, regulatory considerations for project investing for Philippine electric cooperatives must consider how the service area of an EC is electrically dense or not. If the analysis above does not stand with the density of the franchise, then EC #91 has over built distribution lines while EC #86 can be said to have efficiently invested in electric power distribution lines for a greater number of customers.

Static Voltage Stability Analysis for Electric Subtransmission Systems

The study of voltage stability as indicated in the Philippine Grid Code (PGC) is the center of this paper. Standards and industry practice for voltage stability problem-solving are cited and were referred when provided an example simulation. Voltage stability is a must when looking at a power system if it can handle load growth and at the same time maintaining acceptable voltage levels at all system nodes pre and post-contingency. The static voltage stability simulations utilized practical solutions for voltage instability which are discussed and evaluated using Power-Voltage (PV) and Voltage-MVAR (VQ) curves. This report serves as a tutorial for practicing engineers on the important topic of voltage stability.

See paper by clicking this - Static Voltage Stability Analysis for Electric Subtransmission Systems

Philippine Electric Cooperative Data

It is interesting to study the electric cooperatives’ data publicly posted in websites. The following websites provides these data:

• Energy Regulatory Commission (ERC)
• National Electrification Administration (NEA)

Primarily, the ERC data has the following columns:

1. Distribution line length in circuit-kilometers (ckm) – this item refers to the existing overhead lines owned by each electric cooperative. The data must include single-phase, two-phase and three-phase distribution circuits operated in the cooperative’s franchise area, irregardless of voltage level.

2. Number of customers – the total sum of all electric consumers in each electric cooperative service area. This may be the total of residential plus commercial plus industrial plus barangay electrification. Normally this data is the number of electric meters being maintained by the cooperative.

3. Sales volume – this data is in MWh unit. The total sales of each electric cooperative in year 2006 which was supplied to the total number of customers and which was procured from the transmission operator or other electric power supply entities.

4. Consumption per customer – this data is obtained from dividing data number 3 to data number 4. Though looking at average, this is an indicator of how much energy is utilized by each facility.

5. Structure – is the ratio of the mix of residential sales plus barangay electrification to the total energy sales. This shows on how “rural” is the service area of the electric cooperative. A higher value of structure tells us that that the service area is that the demand comprises much of residential and barangay electrification which is more rural, while a lower structure value gives an indication that the service area has commercial and industrial bulk of energy users.

6. Density - this data is MWh sales divided by the ckm of distribution lines. This reveals how much dense is the service area of the electric cooperative in terms of loading in distribution lines.

7. Distribution Supply Metering (DSM) charge – this data is presented in peso per kwh is reflected in the electric bill.

NEA has many available data but in this article we will focus only on two:

1. Reliability score – ERC has promulgated reliability guidelines for electric distribution companies using standard indices. Reliability is the capability of the electric cooperative to minimize frequency and duration of unforced outage in their service area. In this data, NEA may have summarized the electric cooperative data into one single score.
2. Power Quality (PQ) score – same with reliability, PQ is a performance indicator for electric distribution companies, but in this case ERC has devised their own indices. Also, NEA may have summarized the electric cooperative data into one PQ single score.

In the coming articles, I will try to analyze these data and extract technical and objective evaluation thereof.

SEARCHING FOR THE NEW ERC CHIEF

Reactions from the senators on the likely to be appointed new ERC Chief, see this link - http://www.journal.com.ph/index.php?issue=2008-07-10&sec=4&aid=66133

The senators talked sense!!!

Winning TransCo bidder to get franchise soon

A Philippine congressman giving some false lessons in power systems, see this link:

Winning TransCo bidder to get franchise soon

News Impacting Electricity Rates

Napocor seeks ERC clarification on rate cut

Power subsidy sought from Malampaya proceeds

PSALM opens bidding for Iligan power plant

WESM power rates drop to all-time low

MANILA, Philippines – Despite increasing fuel costs, electricity rates at the Wholesale Electricity Spot Market (WESM) dropped at an all-time low, QTV’s Balitanghali reported Tuesday.

According to the report, power rates at WESM dropped to P1.80 per kilowatthour (kWh), around P2 lower than its rates in previous months when the rates were around P4 to P5.

The report quoted Lasse Holopainen, president of the Philippine Electric Market Corporation (PEMC), as saying that the power cut would lower the generation charge incurred by distributors like the Manila Electric Co. (Meralco).

In fact, this decline in WESM's power rates translate to a 30 to 40-centavo per kWh reduction in Meralco's electricity rates.

Holopainen said that the power rates at the WESM plummeted due to the recent drop in temperature in the country. He said that a colder weather prompts power consumers to use less electricity, thereby lowering the demand for power.

The PEMC president also said that the productivity of hydro-electric power plants shot up due to the occasional rain showers and series of typhoons that visited the country.

Aside from the generation charge, a consumer’s electricity bill is also dependent on other factors like system loss. The Meralco had earlier said that it has also incurred a lower system loss in June, which is also set to slash power rates further.

Meralco Vice President Elpi Cuna has said that the Meralco’s system loss charges will go down by as much as six centavos per kWh. - Mark Merueñas, GMANews.TV

Fuzzy Optimization for Distributed Generation Allocation

Abstract— Distributed generation (DG) allocation problem is addressed utilizing fuzzy multi-objective optimization in this paper. It is shown that the methodology provides needed consideration for DG allocation and accounts for uncertainty using fuzzy set theory. Voltage drop reduction, short circuit capacity (SCC) augmentation, decrease operation cost and system losses reduction were considered as objectives for formulating fuzzy optimization. The paper discusses in detail the approach adopted and several numerical examples are presented to test the developed methodology.

Full paper -Fuzzy Optimization For Distributed Generation Allocation

Integrating Power Quality in Power System Planning

Power Quality (PQ) has become a major concern in electric power systems with the increased proliferation of computer electronic loads and power electronic devices in the power system, and more consumer interest in power delivery issues. Understanding PQ requires taking on the viewpoints of the electric utilities, consumers and operators of electrical equipment. Regulatory codes require compliance with stated standards of power system performance measured in terms of quality and reliability. Yet notwithstanding all the quantitative and qualitative technical aspects of PQ, it has heretofore remained primarily a consequential characteristic rather than a planned objective for power systems. Perhaps it is time to consider integrating PQ objectives in the planning process. As such, PQ must fit in with all the other objectives of power system planning – thermal capacity adequacy, voltage security, stability, etc. The challenge for the planner is to take into account the already complicated planning process and integrate PQ.

Different conventional planning tools are utilized for power system planning: power flow studies, short circuit calculations, transient stability analysis and electromagnetic transient simulations, among others. The different planning time horizons utilized in these tools can be utilized for analyzing PQ issues arising from the simulations since PQ concerns account for time ranges.

Case studies show how PQ concepts can be applied to power system planning. Overall, there are opportunities to integrate PQ analysis in conventional power system planning studies. The above discussion of integrating PQ analysis in various studies can be useful in providing a PQ viewpoint in the planning of electric power systems. The result is a power system planned and operated not only for economics and reliability but also for power quality.

Please see the complete article - http://www.pterra.com/Pterra%20Tech%20Blog%2026%20-%20PQ%20Planning.pdf

Harmonic Penetration in Electric Transmission Systems

When the physicians of the power system (planners and operators) treat for resource inadequacy, congestion, instability and all the modern-day maladies of competitive power markets, their regimen may come with an increasingly common side effect – harmonics. The utilization of static var compensators (SVC), induction generators, source converters, underground and submarine cables, direct current converters, to name a few, to provide solutions to power system problems can lead to increasing harmonic penetration in the power system. Harmonic generating equipment coupled with system resonance conditions effects are cumulative and can be detrimental to system operations if not mitigated.

See the complete article on this link - http://www.pterra.com/Pterra%20Tech%20Blog%2024%20-%20Harmonics.pdf

Concept for Distribution System Planning

Rationale - Since distribution utilities (DUs) are regulated with their operational power quality (PQ) and system reliability, which accounts for System Average Interruption Frequency Index (SAIFI) and System Average Interruption Duration Index (SAIDI), it may be considered to utilize the historical data for DU planning in the context of probabilistic evaluation.

Concept Methodology-

1. Gather PQ and DU system reliability data for a certain time range, maybe five years.
2. Establish level of PQ, SAIFI and SAIDI to be utilized for planning purposes by applying 95% probability acceptance.
2. Identify planning alternatives to solve problems of PQ and system reliability.
3. Compute and simulate levels of PQ, SAIFI and SAIDI per planning alternative.
3.1. This may utilize DU system reliability software/spreadsheet and PQ program simulation.
4. Compute relative system unreliability cost and cost incurred for poor PQ for each planning alternative.
4.1. System Unreliability Cost = SAIDI x Cost of electricity (P/kWH)
4.2. Poor PQ Cost = Energy Losses (due to Poor PQ) x Cost of electricity (P/kWH)
5. Compute total cost of each alternative.
5.1. Total Cost = Invesment Cost + Operational Cost + System Unreliability Cost + Poor PQ Cost
6. Two Methods for Planning Altenratives Comparison
6.1. Compare Total Costs of Planning Alternatives.
6.2. Benefit/Cost (B/C) Method, where [(Base Reliability + Base PQ) - (Alternative Reliability + Alternative PQ)]/ Total Cost of Alternative
7. Choosing appropriate planning alternative.
7.1. Choose planning alternative with Lowest Total Cost.
7.2. Choose planning alternative with Highest B/C.

Computer Tools in Power Systems Courses in the Philippines

At the deregulation of electric power industry, technical and value-based studies for planning and operations of power systems as outlined in electricity regulatory codes should be integrated in electrical engineering programs and promote the present scenario by undertaking power systems applications and incorporate computer simulations to stimulate students’ interest and increase their insights with the on-going deregulation of the industry.

The restructuring of the Philippine electricity industry gives a new facet not only to the industry itself but to the education and training of the present and future electrical engineers. With codes and economics governing the operation of electric power systems in the country, challenges in academic instruction to prepare students get ready for work after graduation or board exams remains a daunting task. Technical and value-based planning and operations of these power systems as outlined in should be integrated in the electrical engineering curriculum and elevate the present scenario by undertaking power systems applications and incorporate computer simulations to stimulate students’ interest and increase their insights with the on-going deregulation of the industry. Further, many power system analysis applications that are straightforwardly undertaken using computer programs are required for operations, planning and interconnections.

Recent regulatory filings included the utilization of power system simulations thru suggested software or computer programs. Given this, power industry restructuring education must be started as early as possible to equipped young engineers-to-be by integrating computer simulations into power systems courses taught in the universities. Moreover, the electrical engineering faculty must also take serious measures to keep in-step of the industry changes and challenges in order to prepare students in practical applications by using computer tools.

Acquiring power system software nowadays is not a difficulty experienced in introducing computer simulations in power system courses since some commercial type programs are free with student or demo versions provided for educational and research purposes or even incorporated in power system textbooks. It should be noted that these educational versions are for use only as teaching and research tools and not for commercial purposes. Experiences of classroom utilization of power system simulations are not new and were practically appreciated. It is not the purpose of computer simulations to replace manual computations but to enhance and nourish student learning insights.

Recognizing to resolve the issues discussed above, the integration of the use of computer tools, specifically, PowerWorld, PSCAD/EMTDC and Radial Distribution Analysis Program (RDAP) in power system courses at undergraduate and graduate electrical engineering programs at Holy Angel University (HAU) in Angeles City, Philippines is recently conducted. PowerWorld (http://www.powerworld.com/DemoSoftware/GloverSarmaSimdwnldv13.asp) software is utilized for bulk transmission system planning and operations specifically power flow, short circuit, economic dispatch and contingency analysis. PSCAD/EMTDC (http://pscad.com/download-download.php) is an electromagnetic transients program but was used for power system control lectures while Radial Distribution Analysis Program (RDAP) (http://www.zianet.com/whpower/whpc3.html) is a three phase load flow and short circuit DOS program utilized for electric power distribution systems lectures and projects. The utilization of these power system computer programs is incidental since student or educational versions are provided for free thus it is not the aim to endorse the said specific power system softwares.

Analysis of the Visayas Power Situation

Recent newspaper reports indicated that the Department of Energy (DOE) has deferred the launching of the commercial operations of Wholesale Electricity Spot Market (WESM) in the Visayas region due to the report of an Australian firm, Intelligent Energy Systems (IES) (http://www.philstar.com/archives.php?aid=200804157&type=2&). IES was commissioned by DOE to assess the readiness of the said region in having an electricity market operation.

IES reports the following:

• Visayas region is not ready to have its own electricity market due to the inadequacy of power supply.
• Upgrading of transmission lines as one of the remedial measures to prevent any power shortages or interruptions.
• Market participants must have long-term contracts for their power supply.
• The estimated peak demand for Visayas is 1300MW while the available generation capacity is 1700MW plus the High Voltage Direct Current (HVDC) link output of 150MW.
• Visayas is suffering from scarce of generation reserves.
• Involuntary load shedding or manual interruption of power is practiced regularly in the Visayas grid.

Here are my thoughts based on the newspapers’ and news websites’ reports:

1. Inadequacy of generation is one main reason why an electricity market should not be established. DOE knows this even beforehand since they report power statistics in their website (http://www.doe.gov.ph/EP/Powerstat.htm). Electricity market brings competition to the generation sector thus with scarce of power supply this will not be true further.
2. Upgrading of existing transmission lines to prevent power shortages may fall short to solve the problem. Imagine having a two bus system with a transmission line of good capacity where the amount of load is almost equal to the generation. Here’s the scenario, if some of the generation may be out for maintenance or some plant trouble, then reserves is not sufficient and may impact the reliability and quality of supply at the loads. If we add another transmission line this will increase the transfer capability of generation to the load but will not increase the amount of generation and reserves since the system is out of power generation! Though generation competition requires transmission capacity, this does not solve generation scarcity in the Visayas grid.
3. Long term contracts will freeze the electricity price whether in a market situation or regulated conditions. This is a good approach for hedging in markets.
4. The evaluation of the real power generation (MW) is a welcome approach but may not be complete since reactive power (MVAR) should be integrated. Visayas grid suffers from voltage problems with generation deficit plus insufficient MVAR sources. Note that the 1700MW generation can help to provide MVARs but having mostly 69kV systems, in case of Visayas, this reactive power may be not enough.
5. Reserves are needed for operating a power system. These are resources that can be relied upon in the event the power system experiences untoward disturbance. In an electricity market, these resources are allocated and paid accordingly. Having insufficient reserves will fail the spirit of competition in an electricity market.
6. Load shedding or dropping may be cause by underfrequency or undervoltage. This is a result of under generation. Payment to the dropped loads must be given since they help out in alleviating operational constraints in the Visayas grid. Loads that are shed are acting as “reserves” in this case, so incentives must be attributed to them.

Overall, to solve the Visayas power situation, the regulation and politics of power generation investment in the Philippines must be set aside. Generation sector is a competitive business; the energy regulator must keep itself from a distance with the power generation business. Cross-ownership in the power sector must be seriously looked into since this will impact incoming generation investments. The government must show its integrity and strong support to generation investments and keep its hands clean toward unwanted corruption in the electric power industry.

Voltage Security in Philippine Power Systems

Voltage security in power system planning and operations is an important factor of grid and distribution codes in the Philippines. The power system, system components and customer devices respond to the magnitude of voltage in a manner that would impact its operation. Power system interruption cascades when voltage collapse is experienced. Generators and other system elements tend to be saturated when keeping the voltage secured at certain limits. Customer devices might misoperate or may expel from its connection point when voltage is not appropriately within the devices’ operating regions. These are some of the reasons why it is important for a power system to be planned and operated in terms of voltage security. With areas where generation deficit is a problem, voltage security is hard to achieve since generators provide and assist in keeping the voltage secured in terms of reactive power management.

Philippine transmission systems must be operated in normal conditions within voltages of 0.95 per-unit up to 1.05 per-unit while distribution systems are expected to have voltage levels from 0.90 per-unit to 1.10 per-unit. These voltage magnitudes should be kept in steady-state conditions. Scheduled maintenance of lines and other components must be conducted making sure that these voltage performance standards must be kept. When a fault or a transient event occurs, the voltage levels can not deviate from 0.90 per-unit to 1.10 per-unit as long as 0.00833 seconds to 60 seconds. In this case, voltages magnitudes are classified as voltage sags or swells. Above 60 seconds, and the voltage levels are still deviating from the said limitations, these voltages are called long duration voltage variations.

Voltage security can be planned and operated by reactive power management and predicting the voltage profile in contingency analysis. Reactive power supervision entails updated reactive power capability curves of existing generators and list of static and dynamic reactive power devices installed in the power systems. When running a post-contingency voltage assessment, the reactive power capabilities of generators, reactors, capacitors and static VAR devices (SVDs), and operating points of tap-changing transformers, must be considered since these options can be enable in running appropriate post-contingency power flow solution. The area/zone/buses in study must be identified by the power system engineer(s) for proper scenario and conditions setting. The voltage ranges limits and voltage deviation limits must be defined for the area or zone or buses in study for analysis purposes. Together with the identification of the area in study, possible system contingency scenarios, assigning of voltage limits at the area in study the power flow solution or transient simulation can be automatically configured to report all the violations as a result of each probable contingency. Usually, in power flow computations, these can be presented in tables or graphs while for transient simulations, whether in phase domain or time domain, these voltages are analyzed using time versus voltage plots.

Philippine power systems just like any other power systems must be operated in voltage security. Voltage must be operated and planned accordingly for the power system and its components to operate securely. Codes define limitations and thus appropriate prediction and prevention of unsecured voltage can be analyzed. Knowledge of existing reactive power devices in the power system and proper coordination of these devices will enhance voltage security together with applying computer solutions that can automatically provide flexible programming of studying areas of voltage violations.