Tuesday, April 26, 2011

Big business groups eye power development in Mindanao

By Edith Regalado (The Philippine Star) Updated April 26, 2011 12:00 AM


DAVAO CITY , Philippines  – President Aquino said big business groups are interested in investing in power in Mindanao in an effort to help ease the power crisis in the south.
“Big business groups expressed interest to produce power of over 1,000 megawatts in Mindanao,” the President said during a brief visit here on Maundy Thursday to pay his last respects to the late banana magnate and industrialist Jesus Ayala. The President said new investments would be in coal as it is the most feasible business venture at the moment.
“It would probably be in coal. We also would like to lessen Mindanao’s dependence on hydroelectric power as there is a perpetual El Niño in the area. Other alternative sources are also very expensive,” he said.
The only problem, the President said is “we have to pave the way for the right environment that would be conducive for these business groups to invest. There is still the National Power Corp. which produces power at P3 per kilowatthour and these investors would produce power at P5.40/kwh. Of course they could not sell it at P3. That is a losing investment,” he said.
This, as Mindanao has again been experiencing power outages in the midst of the scorching summer heat which the National Grid Corporation of the Philippines (NGCP) explained are caused by the unplanned shutdown of a number of power generating plants. “But I was assured the existing problem with the power plants will be fixed by Easter Sunday” the President said.
According to Bambi Capulong, NGCP spokesperson, the power outage became necessary after at least 100 MW was taken out of the Mindanao grid due to unexpected unavailability of the Agus 6 (Units 2 and 4), Agus 7 (Units 1 and 2), and Agus 1 (Unit 1).
The fresh round of power outages scare Mindanaons after they also underwent a severe power crisis last year due to the low water levels in Lake Lanao and Pulangi River in Bukidnon which are the main sources of water of the Agus power plants.
Capulong said NGCP does not own, operate or shut down power generating plants but as the system operator, it has information on the available capacity, system peak and reserves in the power system, particularly in Mindanao.

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