Tuesday, February 22, 2011

Mindanao power situation deemed a cause for concern, but not critical

Business World Online
Posted on February 22, 2011 10:20:47 PM

CAGAYAN DE ORO CITY -- Mindanao’s power situation this summer will be a cause for concern, but should not be critical, Energy Secretary Jose Rene D. Almendras assured participants in a forum held here last Monday.

Crucial Structure -- the Agus 7 hydroelectric plant in Lanao del Sur
He said there is only a two-week "critical" period sometime in May when the Mindanao grid’s power reserves would be relatively thinner due to scheduled maintenance work on its major hydroelectric power plants, which provide up to 55% of the island’s power supply.
During an "Energy Sector-Information and Education Campaign" held at a hotel here, Mr. Almendras said the Pulangi IV hydroelectric power plant in Bukidnon was originally scheduled to undergo a month-long rehabilitation starting this month, but this is expected to be considerably shortened by the National Power Corp.
‘The bigger challenge’
"If only Pulangi is on maintenance, there should be no brownouts," the Energy secretary said.
"The bigger challenge would be in May, when the Agus hydroelectric plants are scheduled for rehab because our reserves would be much lower," he added.
"The reason why we don’t have brownouts in 2011 is weather has been great."
At the same time, however, Mr. Almendras said that Mindanao’s actual reserves, so far, have fallen short of the desired level of about 32%.
The Web site of the National Grid Corp. of the Philippines (NGCP) showed that Mindanao yesterday had 1,345 megawatts (MW) in available capacity against a peak load of 1,181 MW, yielding thin reserves totaling just 164 MW, or about 12% of total available capacity.
Still precarious
At the height of the dry spell in the first half last year that left dry the dams that power the island’s hydroelectric plants, parts of Mindanao experienced daily outages that lasted for three to as long as eight hours.
While the situation has improved with current rains, Mr. Almendras admitted that Mindanao’s power supply remains precarious.
"If one plant goes down [for an extended period] or if there is a surge in demand, the system can’t respond," he noted.
"You can never be 100% sure with power in any setting. That’s why we need every single megawatt of non-hydro generating capacity."
Contingency measures
In preparation for period when the Agus plants will be under maintenance, Mr. Almendras said the Energy Regulatory Commission is extending the ancillary service contracts of the National Grid Corp. of the Philippines with Therma Marine, Inc. to tap the latter’s two power barges to July 7.
Jovy P. Batiquin, Therma Marine chief operating officer, confirmed this arrangement, saying that NGCP itself will have 100 MW, with another 82 MW firmed up in bilateral agreements with various power cooperatives in Mindanao. Each of Therma Marine’s two power barges has a 100-MW capacity.
As further contingency measures, the Energy department also plans to move here three of its power barges from Panay once the power situation on that island normalizes with the operation of new coal-fired power plants, Mr. Almendras said.

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