Power generation

THE complete supply chain of the energy sector is composed of three parts, namely power generation, power transmission and power distribution. As it is supposed to be, the local electric cooperatives are only supposed to be in the business of power distribution, and not in the business of power generation and power transmission. Never mind the business of power transmission because it does not make sense for the local electric cooperatives to be in that business, but there is apparently nothing that could prevent them from going into the business of power generation, particularly in the case of generating electricity by way of renewable sources of energy such as solar, wind, hydro and dendro.

Perhaps it is reasonable to think that the local electric cooperatives could not or would not enter into the business of power generation, because of the large capital it requires, particularly in the case of large power plants that are using coal or diesel. Looking at the present state of technologies today however, it is already reasonable to think that the local electric cooperatives could already go into the business generation by way of tapping renewable sources, primarily because the capital costs are relatively lower, and secondarily because there are existing financing programs that are already available should they want to go into the power generation business.

Truth to tell, power generation is a business that is just supposed to make money for the investor, period. That is however a reasoning that comes from an old wisdom that is purely commercialized, without considering social purposes on one hand, and the long term national interests on the other hand. Considering how important energy is in our national life, it is already time for us to think in terms of a new wisdom that is no longer just commercialized, but is also socialized so to speak, bearing in mind already the generation of energy by way of renewable sources that would also have the additional benefits of reducing our carbon footprint, saving our foreign exchange reserves, earning carbon credits, lowering our costs of living, reducing solid wastes and even creating new livelihood opportunities for our people.

It was welcome news to hear that the National Irrigation Administration (NIA) is thinking of generating electricity in tandem with its default function of irrigation. It’s a brilliant idea, it’s an idea whose time has come, and I commend whoever it is at the NIA who thought of that. Maybe it’s because some NIA officials are now thinking out of the box, or it’s because there are new technologies that are now available that could generate electricity even from very slow flows of water or from very weak downward flows of water. Now that this out of the box thinking has started, perhaps it is also a good time for the National Electrification Administration (NEA) to help in delivering irrigation services by way of electric pumps, and not just by natural water flows.

There are many ways of capturing energy from the sun, and one way that is largely ignored or forgotten is using energy from the sun that is stored in wood chips. Before I am misunderstood, I would like to make it clear that I am only talking about planted species that are renewable, meaning to say the species that are produced in industrial tree farms. Dendro energy as it is usually called, it is often identified with gasifier technology especially when wood or any other cellulosic fuel is used. My main point here is that planted wood is a renewable source of energy, and we have plenty of vacant lands to grow the trees, not to mention the unending supply of sun power that we always get.

Capturing energy from the sun by using photovoltaic solar panels is not new, but what is new now is the technology to store the energy generated by the solar panels into large batteries known as Battery Energy Storage Systems (BESS). Until BESS came along, the energy generated by the solar panels had to be used right away, because there was no way to store it. With BESS now available, the energy could now be stored until it is needed or tapped. In a manner of speaking, BESS also functions as a combination Uninterruptible Power Supply (UPS) and Automatic Voltage Regulator (AVR) but the latter actually becomes irrelevant, because the BESS actually delivers constant clean power.

At first glance, BESS would first gain acceptance as a backup to gasoline powered generators. Later on however, BESS users would come to realize that it is not only good as a power backup, it is also good for power generation, and that is when it is combined with solar panels. The good news here is that any brand of BESS could work with any brand of solar panel, and vice versa. The other good news is that they are both scalable, meaning to say that the solar installations could be expanded and as more solar energy is collected, the number of BESS units could also be increased. Generally speaking, most BESS brands would serve the same purpose, but the price and quality would of course vary.

As it usually happens, well known branded units would have a better quality compared to those that are unbranded or are not well known. The better known brands of BESS in the market now are Tesla, GE, LG and AES. Both Tesla and GE are American made, and would tend to be more expensive. LG and AES are both Korean made, and that is because the AES units are also made by LG. Among these four brands, LG appears to have an advantage, because it offers long term financing through a development fund that has been provided by the Korean Export-Import Bank. Considering that the solar and BESS combination is actually a self-liquidating investment, it would be practical for private companies, government agencies and local government units (LGUs) to try it out.

Among other products, LG is also offering solar powered street lights with built-in BESS units. This would be a practical entry level project for LGUs, as it would immediately lower their power costs while they are still trying to appreciate this new technology. The built-in BESS units in the solar street lights would ensure that the lights would still go on, even if the sun is not out. After learning to appreciate the solar and BESS combination by way of the street lights, the LGUs could try other projects later on, such as the installation of these combined units in their local public hospitals and public schools. Perhaps not known to many of us, there are tax exemptions for private companies that would donate to public hospitals and public schools.

As there are many brownouts that are happening in many localities, it would seem that there are no solutions in sight. Fortunately, the solar and BESS combination is now available as a solution, and it could now be deployed immediately, not only because there is project financing available, but also because solar panels could be installed quickly, unlike the old style power plants that would take too long to build. As another alternative, LGUs could go into public and private partnerships (PPP) in order to become independent power producers (IPPs) and in doing so, they could become suppliers of renewable energy to the existing electric cooperatives in their own localities.

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