The Philippine economy is poised to register solid gains in the medium term despite the weakness of the European zone. A relatively firmer economy means increased demand for electricity—a situation that will test the resolve of this administration in addressing potential problems with unpopular but practical solutions.
The electricity supply in the Luzon grid nearly fell short last week, which would have resulted in power disruptions. Retailer Manila Electric Co. had scheduled “rotating brownouts” Friday, a day after National Grid Corporation of the Philippines raised a yellow alert because of the “thin” power reserves available in Luzon.
That Luzon nearly suffered an electricity supply disruption last week highlights the deteriorating state of the island’s power plants. Many of Luzon’s power plants are relatively new, but they undergo periodic maintenance to make them efficient and lengthen their lifespan.
Their scheduled repairs, however, could wreak havoc on the entire power grid. Some of the so-called standby and baseload plants that should fill up the slack resulting from the repair and maintenance of younger power stations cannot be relied on at a moment’s notice.
The Luzon grid requires a minimum reserve, or spare capacity, of 647 megawatts of electricity to forestall a supply disruption in case one or two major generating plants suddenly conk out. The system, it turned out, only had reserves of 427 megawatts at the end of last week from an available capacity of 7,727 MW against a peak demand of 7,300 MW.
The power demand in Luzon and the whole of the Philippines is expected to rise further as the economy expands. The government clearly must encourage the private sector to put up new power plants—whether fueled by coal, liquefied natural gas or hydro—to make the Philippines a worthwhile investment destination.
More importantly, President Benigno Aquino III and his Cabinet must have the sense of urgency to tackle the deficient power reserves situation. The economy cannot run on a half-empty gas tank.
(Published in the Manila Standard Today newspaper on /2012/June/25) source
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