DoE eyes add'l 1,050 MW as anchor load

Manila Bulletin

By MYRNA M. VELASCO

April 12, 2011, 1:35am

MANILA, Philippines – The Department of Energy (DoE) is betting on additional capacity of 1,050 megawatts in the southernmost power grid that can hopefully be shared by Visayas and Mindanao via the proposed P21 billion transmission link-up project.

Of that capacity though, only 300 megawatts of coal are classified as “committed capacity,” according to Energy Secretary Rene D. Almendras. The other 750MW coal-fired facilities are still in the planning process.

If the energy department gave the go-signal for the National Grid Corporation of the Philippines (NGCP) to rush the Leyte-Mindanao grid interconnection project, the energy chief pointed out that has been hinged on the present overcapacity in the Visayas.

“The commitments in Mindanao are about 300MW. If there will be an El Nino, that will not be enough. We’re trying to put in place the Leyte-Mindanao (interconnection) because the Visayas has excess power now,” he said.

That has been in reference to the coal-fired power project of Conal Holdings of 200-MW capacity in Saranggani province; and the other is the 100-MW by the Aboitiz group. Another project the department is eyeing would be the expansion of the 210-MW Steag coal plant.

Almendras albeit admitted that the excess power for Visayas may only last until 2015. New investments are actually being packaged now to prevent new round of power supply scarcity in the grid in the next four years.

The DoE is being cautioned on the Leyte-Mindanao interconnection project without first assuring that there would be additional capacity to be wheeled through the interconnected lines. Otherwise, it will end up a very costly investment which the people will be shouldering in their electric bills.

But the energy chief is dealing with assumptions that with the linked-up lines, investors “could go either way. They can build power plants in Mindanao or they can build power plants in Visayas. There are groups interested in doing both.”

Almendras added “we really like the idea today that we have the flexibility to move power from Luzon to the Visayas. Our peak load in Luzon is during the day. So if we have a shortage, we can actually get power from Visayas, bring it to Luzon during the day up to 4 p.m.,” adding that this is the same arrangement they would want to see eventually for Visayas and Mindanao.

For the proposed South Cotabato coal plant, Almendras is looking forward to prospects that the host local government unit will finally allow coal mining activities for the facility’s fuel source.

“The South Cotabato power plants if allowed would be 750MW. There’s enough coal for the next 25 years at 750MW,” he said.

The energy chief added “with the proposed 750MW plus the committed 300MW, that will be 1,050MW – that is the load of Mindanao today. So if that project will push, we’ll also have excess power in Mindanao, so that can go either way.”