Wednesday, July 6, 2011

Mindanao power situation in 2012 seen as challenging

Business World Online
Posted on July 06, 2011 11:02:38 PM

THE POWER situation in Mindanao is seen to be more challenging as concerns over the weather, lack of capacity and low reserves may not meet power demands in the coming year, an Energy department official said.

“Next year will be challenging. There can be a possible shortage if you get a really hot summer,” Energy Secretary Jose Rene D. Almendras said in an interview with reporters.
“Although [the weather bureau] made an announcement that we’re entering the La Niña phase. If it pushes through [then] that’s good. Hopefully the new power plants will come online by 2013,” Mr. Almendras said.
He added the Energy department is “not happy with the reserve energy levels in Mindanao because the reserves are only 100 megawatts (MW) during peak hours.”
From March to June 2010, Mindanao experienced power shortages due to El Niño which downed many of its hydroelectric power plants and necessitated the use of more expensive ancillary power from diesel-fired power barges.
The power shortage also caused rotating brownouts which lasted until late last year and which affected businesses.
The Department of Energy (DoE) earlier said the colder weather this year has helped make the power situation in Mindanao more stable.
Investors welcome
Mr. Almendras said the DoE is trying to encourage more investors in the region.
“Reserve levels are very low. The ideal level depends on the ancillary load now. We’re enticing as many investors as we can to Mindanao,” said Mr. Almendras.
The DoE is also planning to ask the Power Sector Assets and Liability Management Corp. to make the transfer of Power Barges 101 and 102 to Mindanao when it privatizes the assets.
Business groups in Mindanao are asking the DoE to announce whether there will be a shortage in power next year.
“It would be good for the DoE to declare this early if we are expecting a shortage in 2012 so that businesses can anticipate and not be caught flat-footed like what happened in 2010 when government did not declare a crisis until it was very pronounced,” said J. Rafael U. Paguio, president of the Cagayan de Oro Chamber of Commerce and Industry Foundation, Inc. in a text message toBusinessWorld.
Additional capacity expected in Mindanao will not come in until 2013.
These are the 300-MW coal-fired power plant of Aboitiz Power Corp. in Davao and the 200-MW coal power plant of Sarangani Energy Corp. in Sarangani province. -- Emilia Narni J. David

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