Wednesday, February 5, 2014

Electric co-ops told to shape up

Manila Standard Today
By Alena Mae S. Flores | Feb. 05, 2014 at 12:01am

The Energy Department is pressing the construction of new power plants to push back the impending power shortage in Luzon by 2015, but electoral violence and local politics are hampering the agency’s efforts.

Data from the Draft Power Outlook 2014-2020 of the Energy Department show Luzon will face a 184-megawatt shortage while the Visayas area can expect an 81-megawatt shortfall. Mindanao is projected to experience a shortage of 218 megawatts.
The department, however, expects new power plants to go online and push back the supply deficit to 2018.
Energy Secretary Carlos Jericho Petilla, in a  speech at the signing ceremony for the power supply agreement between Oriental Mindoro Electric Cooperative and Emerging Power Inc. in Oriental Mindoro, asked electric cooperatives to shape up, even as he lauded Ormeco and Mindoro as models in the quest to provide stable and affordable power to consumers.
The Ormeco-Emerging Power agreement includes the construction of the 40-megawatt Montelago Geothermal Power Plant in Barangays Montelago, Montemayor and Melgar B in Naujan, Oriental Mindoro.
Emerging Power will supply 20 MW to Ormeco under the agreement. The company is negotiating to supply another 20 megawatts to Occidental Mindoro Electric Cooperative.
“There are so many problems in the Philippines regarding electric cooperatives. In comparison, Ormeco is well-managed, with solid financials and no problems,” Petilla said.
Emerging Power, which is building the $180-million geothermal project, is holding talks for partial funding of the power plant from the Netherlands Development Finance Co.
Petilla cited the problems of four cooperatives—Davao del Norte Electric Cooperative Inc., Albay Electric Cooperative Inc., Sorsogon Electric Cooperative 2 and Soreco 3.
He said the problems range from electoral violence to reelectionist local officials attempting to appease voters opposed to geothermal power plants for illogical reasons.   source

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