DOE scrambles to find additional 300MW for Mindanao

By Neil Jerome C. Morales (The Philippine Star) Updated March 15, 2012 12:00 AM


MANILA, Philippines - The Department of Energy (DOE) will issue a circular next week that will result in around 300 megawatts (MW) of additional power capacity that can be used to avert power outages in Mindanao, a ranking official said yesterday.


These measures include lower reserve requirements in grids, the mandatory use of power barges, and energy efficiency programs.


“We hope with the issuance of the circular, we will be able to address the [power outage] situation,” DOE Undersecretary Josefina Patricia M. Asirit said.


“One thing we are looking at is that the National Grid Corp. of the Philippines (NGCP) will no longer be required to engage in the necessary reserve requirements as part of the grid code,” Asirit said.


To date, the NGCP, which operates and maintains the National Transmission Corp.’s transmission business, requires 250 megawatts (MW) of reserve.


But Asirit said the reserve requirement will be lowered to 150 MW, which will result in additional 100 MW capacity for the grid.


Furthermore, Asirit said the Mindanao grid can use 146 MW of power from currently unutilized plants. Of these, 136 MW will from power barges in Mindanao and 10 MW from the coal-fired plant of STEAG State Power Inc.


“There is also an offer from a private firm for two power barges with 120 MW capacity,” Asirit said.


The Mindanao grid, which needs an average of 1,300 MW, lacks an average of 50 MW to 270 MW daily, resulting in two to four hours of rotating brownouts since January, data from the NGCP showed.


A National Power Corp. (Napocor) official said Mindanao power consumers may suffer longer brownouts that will last for several months.


Napocor vice president Rudy Brioso attributed the shortage of power of supply in Mindanao to lack of investments, either coming from the private or public sector, to build new power plants to sustain the growing needs of Mindanao.


Under the circular to be released, the DOE also wants electric cooperatives and distribution utilities to withdraw power only according to their needs.


The circular is a product of DOE’s meetings with the Energy Regulatory Commission, Mindanao legislators, concerned agencies, NGCP, Napocor electric cooperatives and other stakeholders.


NGCP and state-run Power Sector Assets and Liabilities Management Corp. (PSALM) should also use all available power plants.


“You have supply contracts which are not being used but the generation capacity is still short of the peak requirements,” Asirit said.


Furthermore, the DOE is studying the retention of 25 percent of power generated in an area for its host communities instead of entirely being sold out.


Asirit said embedded power generation facilities of companies and institutions can be used to increase available power. Total embedded power generation capacity is at 149 MW, data from the DOE showed.


The DOE earlier warned that power outages in Mindanao could worsen to six to eight hours daily in the summer season due to higher demand and lower output in hydropower plants.


Since 2010, the DOE has been warning that Mindanao needs additional baseload generating capacity through private investor participation.


But the DOE said there were delays in securing permits from local government units. For instance, Aboitiz Power Corp., Sarangani Energy Corp., and San Miguel Corp. are planning to put up coal-fired power plants in Mindanao but these plans were opposed by host communities amid environmental concerns.