Visayas ‘needs more power’

By Katlene O. Cacho
Wednesday, September 28, 2011


WHILE the Visayas now enjoys fewer power interruptions with the entry of new power plants, the Visayas grid still needs an additional capacity of 2,150 megawatts (mw) by 2030 to support future power requirements, said an official from the Department of Energy (DOE).


“The entry of new power plants that had its full operation in the second quarter has improved the power conditions in Visayas. Visayas has enough power supply for now,” said DOE assistant director Irma Exconde.


But she said despite the improved power condition, the region still needs to prepare for additional power requirement, considering its thriving economy. Exconde said the entry of new power plants in the Visayas such as the 240mw coal-fired power plant of Cebu Energy Development Power Corp. and the 200mw coal-fired power plant of Kepco-Salcon has helped supply power not only to the Visayas grid but also to Luzon.


The DOE reported that the Visayas grid had an installed capacity of 2,064mw. Its peak demand in 2010 reached 1,431mw. DoE forecast this year’s peak demand to reach 1,448mw.


Philippine Independent Power Producers Association (PIPPA) president Ernesto Pantangco, meanwhile, said there is a need to build additional capacity. DOE forecasts the demand in power to grow by 4.6 percent.


In a recent energy media workshop, Pantangco said the Visayas supply-demand balance is moving toward a surplus, with 620mw of new capacity coming from new power plants.


“Visayas has adequate power supply but come 2016, it will need additional supply,” Pantangco said.


He said the country is fortunate it didn’t have a hot summer this year as this helped address power shortage, particularly in Luzon. The excess capacity and the commercial operations of the wholesale electricity spot market in the Visayas and the wet summer have helped offset power shortage.


Pantangco, however, warned that with the National Power Corp. (NPC) no longer allowed to build new plants, the years from 2012 to 2016 will be tight reserve years unless more private sector investments in generation come in.


Apart from building new capacy, Philippine Electricity Market Corp. assistant manager for institutional relations Eric Niño Louis also said there is a need to establish a power reserve market in order to address the need for capacity when there are shortages.


“Power reserves will also help ensure reliable power supply in the system and may prevent power disruption that would impact the country’s economic activities,” Louis said.


Published in the Sun.Star Cebu newspaper on September 29, 2011.