(The Philippine Star) | Updated June 16, 2017 - 12:00am
MANILA, Philippines -
The National Economic and Development Authority (NEDA) is urging power
companies to invest more in rural electrification to drive down the cost of
power while meeting domestic demand.
During the
recently-held Meralco Planning Inputs Cascade Session, Socioeconomic Planning
Secretary and NEDA chief Ernesto Pernia said power companies have a crucial
role in helping sustain the country’s strong economic growth as a stable power
supply is vital to the growth of the agriculture, fishery and forestry sectors.
“Noting that energy
security is a critical input to stimulating and sustaining socioeconomic
development, the private sector can participate in the generation of additional
power to meet the growing demands of the country,” said Pernia.
The country’s new medium
term development plan notes that despite efforts exerted to pursue nationwide
distribution of electricity, many rural and off-grid areas still have no stable
access to power.
Average nationwide
household electrification level is relatively high at 89.6 percent. The level
of electrification in Luzon and Visayas at 94.8 percent and 92.4 percent,
respectively, however, is still significantly higher than that of Mindanao at
72.4 percent.
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Despite the reasonable
level of power provision in the country, incomplete electrification in rural
areas is affecting the productivity of the farm, fishery and forestry sectors,
the performance of which affects overall economic performance.
Pernia urged power
companies to participate in the qualified third party (QTP) program which the
Department of Energy (DOE) designed to attract alternative service providers
and private investments in rural electrification.
“Participating in
energy development projects will promote competition, increase power
generation, and ultimately drive down electricity rates,” he said.
The DOE wants to
achieve a 90 percent household electrification target by 2017 but to do this,
it has to address supply gaps in underserved areas.
Power firms qualifying
under the QTP only have to pass the accreditation process instead of going
though a bidding process. After getting accredited, it can select areas for
development and start as soon as the DOE approves its plan.
QTP firms must have the
power generation and distribution facilities to service remote areas where the
distribution lines of power cooperatives cannot be immediately extended.
“This is
consistent with the administration’s plan to prioritize the provision of
electricity services to the remaining unelectrified off-grid, island, remote
and last-mile communities to achieve total household electrification by 2022.
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