Monday, February 14, 2011

Gov’t sending power barges to supply-short Mindanao

By Amy R. Remo
Philippine Daily Inquirer
First Posted 20:59:00 02/14/2011

Filed Under: Energy, Electricity Production & Distribution,Philippines - Regions

MANILA, Philippines—The Department of Energy is set to transfer three diesel-fired power barges to Mindanao by end-May or June to help avert possible power supply shortages on the island this year.
Energy Secretary Jose Rene D. Almendras said the government has identified the months following summer as a “critical period” for Mindanao as it anticipated lower water levels at the dams that fuel the hydropower facilities there.
As early as last year, the DOE had said that it expected a 50-megawatt power supply shortfall on the island within 2011.
According to Almendras, the planned transfer of power barges 101, 102 and 103 from Panay to Mindanao might take a month to 45 days to complete. The DOE, he added, has identified possible mooring stations to house the barges.
In case the power barges are put up for auction and bought by private companies before the planned transfer, the DOE may include another condition to the sale of these facilities.
The energy chief said the government was targeting to mandate potential buyers to transfer the power barges and station these in Mindanao for a certain number of years—or about 10 years as proposed by some members of the House committee on energy.
The transfer of the diesel power barges was meant to avoid the rotating brownouts that Mindanao suffered last year, given its heavy reliance on hydropower plants. Mindanao sources more than half of its electricity requirements from hydropower sources, with the Agus-Pulangi hydropower complex providing more than 700 megawatts.
The prolonged drought experienced in the first half of last year had reduced water levels at the dams, drastically cutting the power-generating capacities of hydropower facilities to less than 10 percent.
In a bid to prevent this scenario from happening again, Almendras had said that over the long term, he wanted Mindanao to have at least 500 MW in baseload generation from non-hydro sources like coal to insulate the island from severe power outages and unstable supply in the near future.
The government earlier received commitments from private companies to push through with their coal projects in Mindanao.
Almendras said Conal Holdings Corp. of the Alcantara family would push through with the 200-MW coal facility in Sarangani, the first phase of which will start operating by 2012 while Phase 2 will be available by 2013. The same company, he added, would put up another 100-MW coal facility in Zamboanga.

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