8-Hour Brownouts

DOE Dispels Looming Crisis, Backs PNoy Emergency Power
By ROLLY T. CARANDANG and MYRNA M. VELASCO
March 27, 2012, 10:15pm


MANILA, Philippines — Senator Aquilino “Koko” Pimentel III urged fellow legislators from Mindanao to gather and act as one in coming up with solutions to the ongoing power crisis in the region in the wake of clear indications that it will continue to suffer up to eight-hour daily power outages for a year or two.


With Mindanao officials bracing for a prolonged power crisis, Energy Secretary Jose Rene Almendras supports the grant of emergency power to President Benigno S. Aquino III to address the problem as he dispels reports of a possible power crisis. He also assured that there is no looming brownout in Luzon.


Almendras said that if there is a crisis in Mindanao, it is only in terms of supply – the main triggering factor for the rotating brownouts of one to eight hours.


“The power outages are not only worsening in Mindanao, there are indications that we will be suffering up to eight-hour power interruptions for a year or two. We can already predict that this will lead to a sharp decline in economic activity that may lead to losses of jobs and livelihood. This will heighten poverty in some Mindanao provinces and may create pressures that may spark disruptions in Mindanao’s peace and order situation,” said Pimentel in a press statement.


“To avert this, I am calling on my fellow legislators from Mindanao to come together at the soonest possible time and thresh out solutions that can be implemented immediately,” said Pimentel.


He said although Mindanao's power outages have been recurring, the lack of permanent measures by government energy planners to raise and stabilize supply has made it worse, driving away potential investors and affecting its improving tourism industry despite the island's vast potentials.


Pimentel said the economic costs of the prolonged power outages are incalculable, badly affecting trade, commerce and investments in Mindanao as well as its tourism industry that is beginning to perk up with increased arrivals of both local and international guests.


To address the problem, the DOE will source power supply that shall be contracted by the government, through the National Power Corporation or its successor-company Power Sector Assets and Liabilities Management Corporation (PSALM), from power barges which will be transferred by the private sector from Luzon to Mindanao.


The government, through NPC may also opt to put up new capacity to plug the power supply shortage under a crisis scenario.


Almendras added that the government has already started a P2.6-billion rehabilitation for Agus Hydro Power Complex in Mindanao to solve the power problem.


Pimentel said the power outages could also affect the delicate peace problem in Mindanao, where a long-running communist insurgency and a Muslim secessionist movement continue to create island-wide instability.


To provide short-term relief to the recurring brownouts in Mindanao, Almendras said he is amenable to the granting of emergency powers to President Aquino but it shall only be for a limited period of time.


Section 71 of the Electric Power Industry Reform Act (EPIRA) allows the grant of emergency powers to the President “upon determination of an imminent shortage of the supply of electricity.” This will be upon the authorization of Congress, through a joint resolution, and this shall include the “establishment of additional generating capacity.”


The energy chief similarly emphasized that the “emergency powers” shall be done within the ambit of allowing the government to enter into new power supply agreements (PSAs) so the government can buy or contract that power, which in turn, will be sold to electric cooperatives not having supply contracts with the power generators.


Lower Power Rate


Meanwhile, the public can expect lower electricity prices sooner than expected due to the government’s intensified renewable energy program, President Aquino said.


Addressing the Philippine Investment Forum in Makati City, the President announced the government can already increase its renewable energy capacity in three to five years than originally targeted in 2030.


The President explained that there is a projected demand of 15,400 megawatts of electricity by 2030. But at present, he pointed out there is an installed capacity of 5,000 MW, approved service contracts for 7,067 MW, and pending applications for another 3,771 MW. (With a report from Genalyn D. Kabiling)