Study on the Performance and Environmental Impacts of Luzon

Hydroelectric Power Plants

1. Introduction
The study aims to provide a comprehensive overview of the operation
of hydroelectric power plants in Luzon and shed light on the factors that
can impact their ability to generate and offer their maximum available
capacity in adherence to the Must-Offer Rule. Additionally, it incorporates
the recommendations put forth by the Transmission Company (TC) to
address the issue of validating the explanations provided by Trading
Participants (TPs) in response to the Market Surveillance Committee's
(MSC) inquiry regarding their alleged failure to offer their maximum
available capacity to the energy market.
The study primarily focuses on hydroelectric power plants in Luzon
that frequently experience discrepancies between their maximum available
capacity and the actual capacity offered in the Wholesale Electricity Spot
Market (WESM). Specifically, this report covers the TC's study on twelve
hydroelectric power plants in the Luzon grid, including Angat HEPP, San
Roque Multipurpose HEPP, Pantabangan HEPP, Masiway HEPP, Magat
HEPP, Binga HEPP, Ambuklao HEPP, Bakun HEPP, HEDCOR mini-hydro,
Caliraya HEPP (with Botocan HEPP), Kalayaan Pumped Storage Plant,
and Casecnan HEPP. By examining these factors and providing insights,
the study aims to enhance transparency and efficiency in the operation of
hydroelectric power plants within the energy market.

2. Review of Luzon Hydroelectric Power Plant Operation Protocol

Hydroelectric power plants that possess the ability to store water
have reservoirs designed to serve multiple purposes. These reservoirs
allocate water for various needs such as domestic supply, irrigation, flood
control, and power generation, prioritized in a specific order. Table 2, taken
from the WESM website, provides a breakdown of the different allocations
for hydroelectric power plants (HEPPs) in Luzon.
 For domestic supply dams like the Angat dam, is used for municipal
and industrial used to provide water supply. As seen from the table above,
the above-mentioned water reservoirs are for Power Generation and Flood
Control.
It should be noted that the primary purpose of constructing the major
dams in Luzon was for irrigation and flood control with water utilization for
power generation being of secondary importance. In most cases, the
amount of water allocated for hydroelectric power generation is determined
by the irrigation or water supply requirements. Consequently, even if there
is an ample water supply in the reservoirs to generate power, hydroelectric
power plants are constrained to generate only the portion allocated for
irrigation based on the agreed-upon policy among relevant parties,
including the plant operator, the National Irrigation Administration (NIA) or
National Power Corporation (NPC), and the National Water Resources
Board (NWRB).
Historically, the energy demands on the Luzon grid are highest during
the summer, coinciding with the potentially lowest water levels in the dams.
Additionally, water releases for irrigation purposes are more significant
during the summer season. Therefore, the hydroelectric power plants face
the challenge of balancing the high energy demands with potentially low
water levels. It becomes essential to store water during the wet season,
characterized by high water levels, to supplement the reduced inflow during
the dry season.
 Figure 1
As depicted in in the figure above, in the wet season characterized by
high water inflow, the releases of water for irrigation purposes are reduced
to conserve the water supply for the impending dry season. This
conservation practice is also observed in other major hydroelectric power
plant dams where irrigation is the primary objective.
Furthermore, it is important to highlight that hydroelectric power
plants are optimized during the wet season to accommodate the annual
preventive maintenance of thermal power plants. This optimization allows
for the efficient utilization of hydroelectric power generation during a period
when thermal power plants may undergo maintenance activities.

3. Rule Curve
The operation of the reservoir adheres to a defined procedure to
ensure equitable distribution of water among all users, based on an
agreed-upon policy that specifies the quantity allocated and the timing of
water usage for each user, prioritizing their needs. A rule curve, specific to
each hydroelectric power plant, is employed to guide water allocation. This
rule curve, in conjunction with operational protocols, is established through
consensus among the dam owner (such as NIA or NPC), plant operators,
NWRB, and other relevant stakeholders.
 The primary objective of the rule curve is to ensure the safe operation
of the dam. Derived from historical data on river flows and water demands,
the rule curve indicates the minimum water level required in the reservoir at
specific times to fulfill the intended purposes for which the reservoir is
designed. Compliance with the rule curve is generally expected, except
during periods of extreme drought or when public interest necessitates
deviation. For reservoirs serving multiple purposes, such as irrigation and
power generation, water allocation becomes more intricate due to the
diverse water users reliant on the reservoir. Power generation takes into
account the prevailing conditions of water flow and the allocation of water in
the reservoir, as outlined in the table below.

As depicted in Figure 2 found below, starting from 2013, the actual

elevation of the water in the reservoir fell below the lower rule curve.
Consequently, the releases for power generation were restricted during this
period. When the water elevation remains above the upper rule curve,
releases should be permitted to fulfil various requirements such as water
supply, irrigation, contracted capacity, and river flow maintenance.
Additional releases for power generation can be allowed as long as they do
not cause the reservoir level to fall below the upper rule curve or disrupt the
operation plan.
Between the upper and lower rule curves, all demands for water
supply and irrigation are met. At this point, electricity generation is limited to
the released water allocated for water supply and/or irrigation. If there is
coordination with the relevant party, water releases for power generation
can be permitted. NIA personnel will inform plant operators when additional
releases for power generation are allowable. When the water level falls
below the rule curve, it indicates that there is only sufficient water for
domestic and/or irrigation purposes. In the case of Angat, the remaining
water in the reservoir is reserved exclusively for domestic water supply. In
multipurpose reservoirs prioritizing irrigation, such as Magat, Pantabangan,
Masiway, and San Roque, water is released solely for irrigation purposes.
Electricity generation is limited to these specific releases.
Close coordination and monitoring of the releases are essential,
involving the NPC or NIA, along with the relevant agencies responsible for
reservoir operation and management. This coordination extends to the
users of water from the reservoir and the traders of electricity generated by
the power plant. During the off-irrigation period, there is an allowable
minimum release for power generation.

Figure 2

4. Capacity Reporting and Insufficient Information

The Transmission Company (TC) acknowledges the complexity of
hydroelectric power plant operations. Several factors, including
multipurpose reservoir functions, inflow prediction, re-regulation dams, and
ancillary services, impact a power plant's capability to offer capacity.
However, the information currently provided by the Trading Participants
(TPs) regarding capacity gaps is considered insufficient for the Market
Surveillance Committee (MSC) to accurately assess the validity of the
maximum available capacity offered.
5. Recommendations for Enhanced Capacity Reporting
To ensure a sound judgment of the offered maximum available capacity,
the case study suggests:
 Regular maintenance and periodic inspections to improve operational
efficiency and minimize downtime.
 Implement sediment management strategies at Magat Power Plant to
maintain reservoir capacity and reduce downstream impacts.
 Strengthen environmental monitoring practices, especially water
quality and fish migration, across all hydroelectric power plants.
 Encourage further research and investment in renewable energy
sources to diversify Luzon's energy mix and reduce environmental
dependence on hydroelectric power plants.

6. Conclusion

The operation of hydroelectric power plants in the WESM is affected

by a range of protocols, constraints, and factors specific to each plant type.
Accurate capacity reporting, considering the complexities involved, is
crucial for market transparency and efficient electricity supply. Enhancing
the information provided by the TPs can assist the MSC in better assessing
the validity of the offered maximum available capacity and contribute to the
overall reliability and effectiveness of hydroelectric power generation in the
market.

Reference:
Philippine Electricity Market Coorporation Technical Committee Study on
Luzon Hydroelectric Power Plants , November 7, 2019
Group 1 Members:

Amahoy, John Paul

Benignos, Jake
Catian, Sem Bryan
Dublin, James Winfred
Gelig, Leomar
Lucero, Jasper