DOE warns of power crisis by 2014

Manila Times.net
Written by : Euan Paulo C. Añonuevo, Reporter


LUZON may suffer power outages again in three years’ time unless new coal plants are put up immediately, according to the Department of Energy.
At the launch of the Philippine Stock Exchange’s listing rules for petroleum and renewable energy companies, Secretary Jose Rene Almendras said Luzon would need a 600-megawatt base load plant by 2014 to avert a power supply shortfall.

However, coal-fired power plants, which could plug that deficit, have met with stiff resistance from local government units and non-government organizations, he said.

“All the coal projects . . . they are having difficulties. We will have brownouts in 2014,” Almendras said.

The DOE chief said a coal plant would have to be put up for Luzon’s power requirements because it is cheaper than other base load facilities that run on different fuel sources.
Also, a coal plant can be put up in about three years.

“We don’t have the terminal for liquefied natural gas. The Malampaya project is fully utilized. Geothermal, we have to find geothermal resources. Hydro takes time to build,” Almendras said of the other fuel sources.

Redondo Peninsula Energy, a joint venture between Manila Electric Co. and Aboitiz Power Corp. had signified its intent to put up a 600-megawatt coal power plant, while AES Corp. had said it would double the capacity of the 600-megawatt Masinloc coal-fired generating facility in the next few months.

Both projects however have come up against resistance from the host LGUs because of environmental issues.

If the LGUs don’t stand down, the national government would have to step in to ensure the projects push through, Almendras said.

“If national interest is not protected then the President will exercise [his] powers. But we’re hoping that we will not get there,” the DOE chief said.