Energy dep’t mulls options given power shortage

Business World Online
Posted on January 18, 2012 11:22:24 PM


THE ENERGY department is studying the possibility of compelling electric cooperatives and distribution utilities to buy power from more expensive sources, an official told reporters in an interview yesterday.
Mindanao does not have reserve power as power plants in the area are currently under maintenance.
“We are studying options and if I have to, I will issue a department circular which will hopefully be effective,” Energy Secretary Jose Rene D. Almendras said in an interview yesterday.
Mindanao had a peak demand of 1,255 MW and an available capacity of 1,190 MW yesterday.
It had no reserve power.
Mr. Almendras said the reserve shortage is due to power plants in Mindanao undergoing a maintenance cycle.
The Energy department, however, insisted there was still enough generation capacity in the region.
Mindanao experienced power shortages in 2010 after hydroelectric power plants had to be shut down due to low water supply.
At that time, more expensive power from power barges 117 and 118 had to be used to provide additional power.
The power barges have a capacity of 50 MW each.
The National Grid Corporation of the Philippines (NGCP) used the power barges as ancillary power during the summer months due to the shutdown of hydropower plants. Ancillary power rates are much higher than regular electricity rates at P7.43/KWh.
After the plants came back online, NGCP continued to use the barges to augment power supply until consumers complained of high prices.
However, due to the continued brownouts in the region, the Department of Energy and the ERC allowed NGCP last year to use the barges for ancillary power despite the high prices.
Power barge 118 is currently stationed in the Compostela Valley while power barge 117 is in Agusan del Norte.
Therma Marine, Inc. won the bidding for power barges 117 and 118 in Mindanao in March and February 2010. Power barge 117 was sold for $16 million while power barge 118 went for $14 million. -- Emilia Narni J. David