Monday, March 21, 2011

Mindanao projected to need 1 gigawatt more

Business World Online
Posted on March 21, 2011 10:51:50 PM

GENERAL SANTOS CITY -- Mindanao will need new power plants with total capacity of 1.144 gigawatts (GW) by 2019, an official of the National Grid Corporation of the Philippines (NGCP) said here recently.

NGCP spokesperson Cynthia P. Alabanza said in an interview that the island’s new plants should be built starting next year if power supply is to keep up with demand growth.
Of the projected 1.144 GW of additional generation capacity for Mindanao, Ms. Alabanza said that "904 megawatts (MW) will still come from hydro sources, while geothermal power will account for 140 MW and coal, another 100 MW."
NGCP’s 2010 Transmission Development Plan showed the company expects the supply of power in Mindanao to remain critical up to next year, as planned additional generation capacity will not go on stream until 2013.
The NGCP plan had projected Mindanao’s power demand to grow by a 4.28% compounded annual rate over 2010-2019.
The Web site of the NGCP showed the company expects demand in Mindanao today to range from 1.099 GW during daytime to 1.163 GW in the evening against a 1.333-GW capacity, yielding thin reserves of 170 MW-234 MW.
In anticipation of demand growth, NGCP has planned at least four transmission projects, involving the upgrade and expansion of the 138-kilovolt (KV) Aurora-Polanco transmission line that will serve Dipolog City and surrounding areas, the 138-kV Sangali-Zamboanga line and of the 230-kV Balo-i-Villanueva line, as well as adding more transformers in select substations across Mindanao.
The drought that lasted the first half of 2010 highlighted Mindanao’s precarious power situation, as the calamity left dry the dams that power the hydroelectric plants that account for more than half the entire island’s supply. This situation, in turn, resulted in outages that hit as long as 12 hours in parts of the island.
The experience prompted business groups on the island to call for the diversification of power resources away from hydro, even if this could mean more expensive electricity rates.
Ms. Alabanza pointed out that "unless new power plants come in, the grid will continue to experience power shortages, especially during dry season."
A long-term solution to Mindanao’s persistent power woes also includes connection of the island to the national grid.
NGCP President Henry Sy, Jr. had said in a statement last week that the company was prepared to start spending for the long-delayed Leyte-Mindanao Interconnection Project, starting with a feasibility study.
The entire project, which was approved by the National Transmission Corp. -- NGCP’s state-owned predecessor -- in 2006, is estimated to cost about $275 million. -- RSS

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