My Core Expertise

Core Expertise and Interests in Energy & Business Development Consultancy:

1) Conducted energy audits and other energy conservation activities, quantify energy and cost savings, determine technical, economic and financial viability of each investment alternative, recommend investment, implement and monitor effectiveness.

2) Updated regularly energy technology materials on oil/gas/coal thermal, geothermal, reciprocating engines, simple and combined cycle gas turbines, nuclear, large/small/mini/micro hydro, pumped storage, wind, solar, fuel cells, biomass, municipal solid waste, landfill gas, biogas, ocean wave, tidal power, and energy storage technologies (compressed air, flywheel, magnetic, capacitor, battery).

3) Familiarized with DOE and world energy supply/demand projections for major fossil fuels and renewable energy resources.

4) Maintained energy data base on various power generation technologies (capacity, overnight installed cost, capacity factor, fixed and variable O&M costs, local regulatory fees and imposts [DOE 1-94, franchise tax, income tax, property tax, LGU taxes], economic life, heat rate or efficiency, excess air firing and power plant emissions of CO2, SO2, N2, NOX), and resulting levelized cost of energy and power generation.

5) Maintained data base on various power plants in the Philippines such as: grid, power plant and fuel type, location, proponent, owner, type of contract, commissioning date of various units, rated and dependable capacities of units, operating days and plant capacity factor, gross and net generation, station or plant use, average selling price, gross revenue, fuel costs, other variable & fixed costs, gross margin, transmission costs, interest/financing charges, other incomes/expenses, net income, rate base (asset), expected RORB, gross and net heat rate, thermal efficiency, mechanical efficiency, electrical efficiency, fuel gross heating value and cost.

6) Maintained expertise in optimization of refinery operation (crude oil selection, refinery processing, product blending, tanker fleet scheduling and assignment) and electricity dispatch (maintain input data such as power plant block capacity and efficiency, fuel costs, variable and fixed O&M costs, minimum power contracts, transmission line constraints).

7) Prepared transmission line calculation model to simulate TRANSCO power billing given supply voltage and backup requirements.

8) Prepared project finance models to value power plants and prepare bids or to determine tariff to meet DCF IRR. This required conduct of technical due diligence to gather, process and validate model inputs such as dependable capacity, capacity degradation, heat rate degradation, maintenance schedule (planned overhaul, regular maintenance, economic S/D, deactivated S/D, forced outage), plant availability and reliability, capital expenditure plan, maintenance expenditure plan, environmental mitigation plan, off-take arrangements (price, quantity), transmission line constraints, transmission cost.

9) Prepared Feasibility Studies (market, technical, economic, financial) to determine the economic viability of a business concept using the project finance model as a tool for optimizing plant configuration and business concept, equity structure, financing source and arrangements.

10) Prepared energy pricing models given the known oil price drivers (Dubai crude, exchange rate, product MOPS, government taxes/imposts, oil company margin, other supply chain costs). The oil prices and other consumer price indices (RP and US CPI) feed into the price of imported and local coal (parity pricing), geothermal steam, natural gas, hydro and eventually into the price of electricity when used for power generation.

11) Assisted the Energy Emergency Task Force in preparing contingency plans in the event that oil prices reach over $100-200/bbl in the international market. Aside from using the energy pricing models, it estimated the contribution of energy taxes and duties to the national treasury in order to estimate the country’s budget surplus/(deficit), inflation rate, exchange rate and GDP/GNP grow rate.

12) Prepared a proposal for the “Optimal Use of Surplus, Banked, New Finds of Malampaya Natural Gas” to advice the DOE on the best option for the power and non-power use of natural gas in the country.

13) Prepared a project finance model for the country’s first Qualified Third Party (QTP) applicant to supply sustainable electricity service (power generation and distribution) to remote and unviable areas that have been waived by the franchised distribution utility. The diesel-biomass power plant hybrid has been endorsed by the DOE to the ERC for QTP licensing and Universal Charge-Missionary Electrification (UC-ME) subsidy to cover the difference between the full cost recovery rate (FCRR) and the socially acceptable retail rate (SARR). The FCRR includes the return of capital (asset base), recovery of generation costs, and reasonable profit (modified RORB method) so that the project will recover the DCF IRR equal to the weighted average cost of capital (WACC) or minimum equity IRR (hurdle rate of investor) as may be approved by the ERC. This template model will be used by the DOE/ERC in determining the “best new entrant” to supply electricity service in the waived areas and could handle diesel, biomass, wind, solar, micro-hydro and hybrid combinations in order to have sustainable and stable operation.