Growth in power consumption accelerates

Business World Online 

Research

ELECTRICITY CONSUMPTION rose faster in 2010 than in the previous year, fueling worries that the country’s power generating capacity might not be able to meet the growing demand.

Total power consumption increased by 9.4% to 67,743 gigawatt hours (GWh) last year from 61,934 GWh in 2009, when the annual growth rate was only at 1.8%, data from the Department of Energy (DoE) showed.

Overall consumption has been rising since 2000, when it was pegged at only 45,290 GWh. Cid L. Terosa, senior economist at the University of Asia and the Pacific, said this is an indication of a healthy economy. “The higher the power consumption, the higher the economic activity, the higher the economic growth,” he said.

Power consumption went up across all sectors in 2010 — by 7.6% to 18,833 GWh for residential, by 10.2% to 16,261 GWh for commercial, by 8.7% to 18,576 GWh for industrial, and by 4.8% to 1,596 GWh for other sectors. The power utilities themselves accounted for the rest of the electricity consumed last year.

Meanwhile, the country’s installed generating capacity grew by just 4.8% to 16,359 megawatts in 2010 from 15,610 MW the previous year.

“This is one of the reasons why electricity is expensive in the Philippines — the demand is greater than supply,” Mr. Terosa said, adding that according to studies, the Philippines is in danger of experiencing a power shortage in 2013 if energy problems are not addressed immediately.

Last July, DoE Secretary Jose Rene D. Almendras also expressed concern over the country’s energy problems, particularly in Mindanao where hydroelectric power plants are concentrated. Mr. Terosa said these plants suffered from a depletion of water supply last year due to the El Niño phenomenon, which resulted in rotational brownouts in Mindanao.

DoE data showed that the power output of hydroelectric plants dropped by a fifth last year, to 7,803 GWh from 8,788 GWh in 2009.

Mr. Almendras said that while cooler weather in 2011 helped stabilize power in Mindanao, additional power generating capacity would not be available until 2013.

Geothermal and natural gas output also fell, by 3.8% to 9,929 GWh and by 1.9% to 19,518 GWh, respectively.

On the other hand, coal power plants, the country’s main source of electricity, recorded a significant 41.4% increase in output to 23,301 GWh last year. Also recording increases were oil-based power sources (by 32% to 7,101 GWh) and renewable sources like wind, solar, and biomass (by 13.9% to 90 GWh). — Mariae Francesca C. Ramos

POWER CONSUMPTION BY SECTOR, IN GWH
	2009	2010	Percent change
Residential	17,504	18,833	7.6%
Commercial	14,756	16,261	10.2%
Industrial	17,084	18,576	8.7%
Others	1,523	1,596	4.8%
Utilities' Own Use	3,524	4,677	32.7%
Power Losses	7,542	7,800	3.4%
Total	61,934	67,743	9.4%
INSTALLED GENERATING CAPACITY IN MW
	2009	2010	Percent change
Oil Based	3,193	3,193	0.0%
Hydro	3,291	3,400	3.3%
Geothermal	1,953	1,966	0.7%
Coal	4,277	4,867	13.8%
New RE	64	73	14.1%
Natural Gas	2,831	2,861	1.1%
Total	15,610	16,359	4.8%
Source: Department of Energy