Mindanao power lack seen worsening with plant closure

Business World Online
Posted on March 27, 2012 09:55:40 PM


THE BLEAK power situation in Mindanao is expected to worsen for a month with expected repairs in a unit of a baseload facility even as costlier backup supply is still contingent on regulatory approvals, a Cabinet official said yesterday.


Energy Secretary Jose Rene D. Almendras said Pulangui 4 of the 700-megawatt (MW) Agus-Pulangui hydroelectric plant will be shut down from April 9-May 9 to give way for repairs on the portion of the facility that transmits water from the river to the plant. Repairs will cost P7 million to P10 million.


"We really need to shut down the plant and do the repairs now. Last year we identified the issue but there was no urgency for the repair. We cannot wait until the problem causes the plant to stop running altogether," he said during a briefing with reporters.


The plant shutdown will mean an additional 120-MW shortfall to the acute supply lack. According to the National Grid Corporation of the Philippines (NGCP) Web site, power output in Mindanao was short by 179 MW yesterday.


The expected gap is expected to be filled in by the entry of 100 MW of available capacity -- currently with no existing contracts -- from Power Barges 117 and 118. The situation, however, is contingent on the issuance by the Energy Regulatory Commission of the provisional authority for six electric cooperatives to tap the energy source.


An additional 20-25 MW is expected from the repaired second unit of Agus 6 when it resumes operation on March 31. The Agus-Pulangui facility is along the river’s namesake which stretches from Lanao to Bukidnon.


"There could be a gap of one week for the approvals from the time we start repairs of Pulangui. The ERC said it will be fast-tracking the approvals and is stepping up on its own volition," said Mr. Almendras.


Power Barges 117 and 118 -- which utilize diesel -- are owned by Therma Marine, Inc., a subsidiary of Aboitiz Power Corp. The units previously supplied ancillary or backup power to NGCP. Their use is in line with a circular issued by the Energy department on Friday which requires the use of all available sources of energy to mitigate a supply shortfall in Mindanao.


Meanwhile, customers on the island should expect costlier power from the barges.


Mr. Almendras said the cost of power generation will rise by P0.50 per kilowatt-hour (kWh) to P0.80/kWh in some areas depending on their requirements.


In a related development, Mr. Almendras is open to calls of lawmakers for special powers to the President to "solve" the power lack in Mindanao, but he said the scope should be identified.


"I need to understand first what special powers. Will government be allowed to engage in consolidation of power purchase agreements?" said Mr. Almendras.


Under section 71 of the Electric Power Industry Reform Act of 2001, the Joint Congressional Power Commission can grant special powers to the President "for the establishment of additional generating capacity." -- E. N. J. David