Luzon power crisis in 2013 looms–UP prof

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SUNDAY, 01 MAY 2011 19:24 LIZA T. AGOOT / CORRESPONDENT

BAGUIO CITY—The entire Luzon island is bound to again experience rotating brownouts in 2013.

This will happen even if the government immediately takes action on the impending power crisis in the Luzon grid.

Rowaldo del Mundo, professor of the University of the Philippines National Engineering and Electricity Center, said the country is likely to experience scheduled power interruptions and rotating brownouts to cope with the projected increase in electricity demand in 2013.

During a lecture in this city, del Mundo, an expert in electricity issues, said the Luzon grid forecasts a higher demand for electricity by 2013, which the power industry within the Luzon grid is incapable of supplying.

Luzon grid’s present capability, he said, is limited compared to the expected increase in demand among industries and businesses requiring a large amount of wattage and volume of power.

He said with the current production capacity of power producers, it would not be able to sustain the demand, thus the need for rotating brownouts to be able to meet market demand.

This is apart from both the scheduled and unscheduled maintenance and repairs that each power plant regularly undertakes when they shut down the turbines producing the electricity to prevent further problems.

The professor also said a power plant takes three years to operate once it has been set up.

Power plants are set up during an energy crisis because of the perks and tax holidays the power producers can avail themselves of when there is a crisis. These are not available on a regular year.

“Investments on power production are put in place by capitalists only during crisis so they could receive the incentives that the government can give,” said the professor.

The Limay oil power plant in  Bataan, which produces 620-megawatts of power, has saved the country in previous years. It is scheduled to be retired but could not be mothballed at this point because it will cause a major disruption in the power supply in the Luzon grid.

Del Mundo said the Energy Power Industry Reform Act (Epira),  or Republic Act 9136, passed in 2001 is designed to bring down electricity rates and improve the delivery of power supply to end-users by encouraging greater competition and efficiency in the electricity industry. The essence of these reforms is giving stakeholders a choice.

“Epira was envisioned to give consumers an assurance of an adequate and reliable power supply at lower rates,” he said.

Del Mundo said the law also states that there will be competition between and among power-generating companies when prices will be market-driven and competitive. There will be long-term contracts and a spot market where the trading of electricity between buyers and sellers will be undertaken. There will also be competition between and among generating companies where prices will be market-driven and competitive.