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SUNDAY, 01 MAY 2011 17:44 PAUL ANTHONY A. ISLA / REPORTER
LISTED AboitizPower Corp. said on Friday it is prepared to invest in the future of Mindanao as it looks into putting up a 300-megawatt (MW) circulating fluidized-bed coal-fired power plant in southern Davao.
AboitizPower said the project will be undertaken by subsidiary Therma South Inc. which is part of its commitment to supply the region’s power needs as its communities, industries, investments and commercial establishments grow—especially in Davao, which has the biggest power supply need in the region.
“AboitizPower has been in Davao for 50 years. Throughout that time and until the present, the company considers Davao its home. As a member of the community, AboitizPower is committed to being a partner in the growth of Davao and Mindanao,” the company said.
Manuel Orig, AboitizPower first vice president for Mindanao affairs, said Mindanao needs a steady supply of power to fuel its growth, as industries, investments and businesses expand.
“This, in turn, will provide livelihood and development to communities. As communities and households increase, so will their demand for electrical power,” he added.
The demand for electricity for Davao and the rest of Mindanao is growing steadily but the supply, unfortunately, has been lagging behind the needed baseload capacity.
AboitizPower said government estimates show that unless power generation is increased soon, Mindanao will soon face a shortage.
By 2014, the shortage will be around 480 MW—enough to cut the entire power supply of the cities of Davao, Cagayan de Oro, General Santos, Zamboanga and Butuan.
AboitizPower assures that it is ready to do its part to help solve the problem through a long-term solution such as investing for the construction of a proposed 300-MW circulating fluidized-bed coal-fired power plant in southern Davao.
The company said it is prepared to invest its own funds, which now amounts to P25 billion, instead of seeking financing from other institutions to fast-track construction.
Orig said unless the proposed power plant is constructed soon, the energy supply situation in Mindanao will become more precarious, especially as 2011 enters the dry summer season.
“Dry months usually bring down the water level in Lake Lanao which lowers the energy-generating capacity of the Agus-Pulangi hydropower complex, the lifeblood of Mindanao’s power supply,” Orig said.
He assured residents and the local government units that the proposed 300-MW facility is safe to operate and will not harm the environment or the communities surrounding it.
“AboitizPower has an excellent track record of human safety and environmental protection in its power-generation facilities. We guarantee that the proposed power plant will not cause harmful effects on the water supply, the health of the communities and the environment,” he added.
Orig said dirty coal power plants are those that used the technologies of the 1950s, 1960s and 1970s, and that new coal-fired power plants are proven to be safe, clean and reliable. AboitizPower’s modern, high-technology coal-fired power plants meet international standards that keep them safe and environment-friendly.
Orig added that they will not do anything that will harm our own community,” Orig said. He noted that there are already clean coal-fired power plants operating in the Philippines and in Mindanao, like the Steag State Power plant in Villanueva, Misamis Oriental and Cebu Energy Development Corp. in Cebu.
“These facilities continue to meet environmental standards and there has been no recorded incident that negatively affected the health and livelihood of the communities around it,” Orig said.
He further explained that AboitizPower is committed to finding the right balance of energy sources to meet the power needs of Mindanao, particularly Davao City. He adds that “our corporate philosophy is to provide safe, clean energy sources that benefit communities and protect the natural environment.”
AboitizPower operates hydroelectric power plants in Davao and Benguet as well. The company is set to build even more hydroelectric power plants in the next two years. Five hydropower projects have been started in 2011.
In Davao, AboitizPower is set to construct the hydropower plants Tudaya 1 (6.6 MW, upstream of Sibulan A) and Tudaya 2 (7 MW, downstream of Sibulan B) in August 2011 which are expected to be finished by December 2012.
Two other hydropower plants in Kitawtaw, Bukidnon, the 18-MW Sita and 12-MW Simod, are due for completion in 2013. In Benguet, the Irisan 3.8-MW hydropower facility will be completed in September.
However, these hydropower plants are dependent on ideal water levels—something that is affected during dry months. Low water levels result in low power-generation. “This is why together with these hydro-electric plants, clean coal-fired plants must also be ready to use. We need to get the right mix of power from different sources so that even in the summer or during El Niño, Mindanao will have reliable power,” Orig said.
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