MANILA, Philippines—The Department of Energy has received a proposal for the establishment of a liquefied natural gas (LNG) power plant in Mindanao, in a bid to augment the inadequate power supply in the grid.
In an interview with reporters, Energy Secretary Jose Rene Almendras said the proposed generation facility would likely be able to produce around 300 megawatts (MW) of additional capacity.
He said LNG would be a good fuel to utilize for a generation facility in power-hungry Mindanao as it is relatively cheap, fast to deploy and readily available. Also, LNG will be a good fit for Mindanao’s predominantly green sources of power, mainly hydro with some solar.
“Mindanao also needs non-hydroelectric generation capacity. There are coal plants being built, but we still need to import coal. Also, putting up additional coal plants there may not be in line with the way Mindanao has been using ‘green’ energy sources,” Almendras said.
The proposal to put up an LNG generation facility in Mindanao is now with the World Bank’s International Finance Corp., he said. The Japan International Cooperation Agency is likewise interested in participating in the project.
Almendras declined to name the investor that submitted the proposal.
Mindanao’s heavy dependence on hydroelectric generation for its power needs made it extremely vulnerable to weather changes. This was seen in 2009 when the grid experienced power outages lasting up to 12 hours a day.
The disconnect between supply and demand—with 80 percent of supply coming from the north and 80 percent of demand coming from the south—was an aggravating factor.
This year, the DOE said Mindanao would likely experience rotating brownouts again.—Abigail L. Ho
In an interview with reporters, Energy Secretary Jose Rene Almendras said the proposed generation facility would likely be able to produce around 300 megawatts (MW) of additional capacity.
He said LNG would be a good fuel to utilize for a generation facility in power-hungry Mindanao as it is relatively cheap, fast to deploy and readily available. Also, LNG will be a good fit for Mindanao’s predominantly green sources of power, mainly hydro with some solar.
“Mindanao also needs non-hydroelectric generation capacity. There are coal plants being built, but we still need to import coal. Also, putting up additional coal plants there may not be in line with the way Mindanao has been using ‘green’ energy sources,” Almendras said.
The proposal to put up an LNG generation facility in Mindanao is now with the World Bank’s International Finance Corp., he said. The Japan International Cooperation Agency is likewise interested in participating in the project.
Almendras declined to name the investor that submitted the proposal.
Mindanao’s heavy dependence on hydroelectric generation for its power needs made it extremely vulnerable to weather changes. This was seen in 2009 when the grid experienced power outages lasting up to 12 hours a day.
The disconnect between supply and demand—with 80 percent of supply coming from the north and 80 percent of demand coming from the south—was an aggravating factor.
This year, the DOE said Mindanao would likely experience rotating brownouts again.—Abigail L. Ho
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