Aquino Launches Hydropower Plant in Davao del Sur

By SARAH JANE R. HILOMEN

September 16, 2010, 7:04pm

STA. CRUZ, Davao del Sur, Philippines — In his first visit after the elections, President Benigno S. Aquino III on Thursday launched the Hedcor Sibulan Hydropower plant here to provide clean and renewable energy to the region.

With Aquino launching the project, the executives of Aboitiz Power, owner of Hedcor Sibulan, expressed confidence that the 42.5-MW greenfield project, costing P6 billion, would make a significant contribution to the Mindanao grid. Early last year, former President Gloria Macapagal Arroyo led the groundbreaking for the project.

In his speech, Aquino expressed gratitude to the efforts of the private sector in resolving the power shortage in Mindanao. "This is a testament to success when the private sector becomes allies of the people," he said.

The Hedcor Sibulan plant is tapping the Sibulan and Baroring Rivers for an estimated generation of over 200 million kilowatt hours of renewable energy.

Erramon Aboitiz, president of Aboitiz Power, disclosed that the Sibulan hydroelectric power plant's generated carbon neutral electricity is expected to reduce greenhouse gas emissions by more than 95,000. It is the first hydropower facility in the country registered under the United Nation's Framework Convention on Climate Change as a Clean Development Mechanism project that will sell certified emission reduction units to industrialized countries.

"It is our answer to the growing demand to develop energy sources that are clean and renewable. It is also our contribution to the worldwide effort to reduce greenhouse gas emissions and arrest the worsening effects of global warming," he said.

The construction of the Sibulan hydroelectric power plant has contributed an estimated P700 million for sustainable projects such as new and improved farm-to-market roads of 49 kilometers, local employment of about 1,100 jobs, rural electrification, and scholarship programs.

Aquino expressed hope that the power shortage problem will be eventually solved. "I hope that before the end (of my term) the power shortage problem will be nothing more than a bad memory," he said.

He suggested other projects that could maximize the generating capacity of Mindanao such as windmill farms in Camiguin and Davao del Sur, a village in Surigao del Sur and Davao Oriental with solar panels as roof, and mini-hydropower plants with local business investors using rural manpower."

Aquino Urges Tapping of Solar Power to Help Resolve Power Outages

September 16, 2010, 5:53pm

MANILA, Philippines – President Benigno S. Aquino III Thursday said he wants a windmill farm in Camiguin or Davao del Sur and a village in Surigao del Sur or Davao Oriental to use solar power as part of a long-term solution to the power shortage gripping Mindanao.

In his speech during the launch of the Sibulan Hydroelectric Power Plant in Sta. Cruz, Davao del Sur, Thursday, Aquino said he has asked the Department of Energy (DoE) "to create a long-term road map to maximize the use of other energy source potentials" such as wind power and solar energy.

"Mindanao, with its natural and renewable energy sources will have a reliable supply of power in the near future. A windmill farm in Camiguin or Davao del Sur will not only supply electricity to localities, but will also boost provincial tourism and local employment. A village in Surigao del Sur or Davao Oriental with solar panels for roofs may just be the solution for communities to be freed from the hours of blackouts in the region," he said.

Aquino was referring to the success of the first wind farm in Southeast Asia in Bangui, Ilocos Norte which not only provides alternative power source but has also become a popular tourist spot in northern Philippines.

The Chief Executive also encouraged "cooperation between local government units and the private sector to explore the creation of mini-hydro plant projects." "These partnerships can be achieved through local business ventures in which rural communities can provide manpower while private investors supply the knowledge and technology. It is also important to rehabilitate inefficient yet still viable plants to maximize their generation capacities," he said.

He said that the launching of the Sibulan Hydroelectric Power Plant is one of the concrete steps being undertaken to solving the power shortage in the region with the help of the private sector.

"This is a clear indication of the private sector’s urgent response to our call to address the power situation in Mindanao. This development not only strengthens the position of the company, Aboitiz, as one of the leading proponents of renewable energy in the Philippines, but reflects its commitment to developing projects beneficial to our people,” Aquino said.

He stressed that “borne out of the creative and strategic collaboration between the government and private agencies, this power plant is a testament to the inevitable success that comes when private entities become allies of the people. We hope that other companies emulate your ventures in promoting sustainable development, not just for the region, but for the rest of the nation.” "The Sibulan power plant reflects a concrete step in that direction. With the active cooperation between government and private entities, we are committed to end poverty and bring peace to Mindanao through vibrant growth and economic progress. We will ensure that Mindanao lives up to its name as a food basket, not just of the Philippines, but of the whole Asia-Pacific region," he added.

Apart from decades of political conflict and hunger, energy shortage has prevented Mindanao from reaching its full potentials, he noted.

"Mindanao is called the food basket of the country for many reasons. Geographically blessed, it enjoys a bountiful harvest of farm products, and a thriving fishing industry. While it is largely spared from typhoons and other natural calamities, it has been hammered by decades of political conflict, hunger, and recently, an energy shortage. This has prevented Mindanao from reaching its full potential," he said.

Aquino expressed hopes that power problems will be a thing of the past after his six-year term.

"We have bright days ahead of us. By the time I leave office, it is my hope that power problems in this part of the country will be nothing more than a bad memory. I am glad to be your comrade-in-arms in our pledge to build a prosperous future for the next generation. Let us fulfill the dreams of generations. Let us make Mindanao the true land of promise and not of broken promises.”

Weighing Mindanao’s power problems: The case for renewable energy

FASTLANES By BenCyrus G. Ellorin | Thursday| September 16, 2010 | Filed under: COMMENTARY

Last of 2 parts

Defined, renewable energy is:
“n. any naturally occurring, theoretically inexhaustible source of energy, as biomass, solar, wind, tidal, wave, and hydroelectric power, that is not derived from fossil or nuclear fuel.”

At the height of the power shortage this summer, I struck a conversation with a worried pregnant mother working in one of the coffee / internet shops in Cagayan de Oro’s Divisoria. A mother of two, and seven months pregnant, she was very anxious as her salary, very meager to start with, has been slashed to half for the simple reason that they only operated half-day because of the rotating brownouts.

That to me is the face of the power crises in Mindanao.

The 19th Edition of the Mindanao Business Forum which will convene in Cagayan de Oro on Sept. 18-19 will once again tackle the Mindanao power problem.

And I do agree that what we need now are new power plants. Some maybe surprised by this stand now, knowing that I had lead the community opposition of the last base load power plant that went online in the Mindanao grid, the Mindanao coal-fired power plant of Steag in Villanueva, Misamis Oriental a few years ago.

As memory refresher though, we were not saying then that power plants are not needed. We argued that the coal-fired power plant which they were rushing in order to fill the so called power shortage in 2002-2003 was not necessary and we argued then that there was still a window to tap clean and cheap renewable energy.

Based on 2005-2014 PEP, our energy generation will be negative compared to demand starting in 2012 and would reach a 500-megawatt deficit in 2014.

I reviewed the computations of the DOE and found out that unlike the high nine percent average GDP projection for the medium term planning period of 1995-2004, the current PEP used the average four percent GDP growth projection for the 2005-2014 planning period.

In the upcoming Minbiscon, I am sure that on the options menu to be offered to investors will be at least three coal-fired power plant.

There is no doubt, Mindanao needs new power generation plants. Aside from the fact that energy demand is increasing and no new power plant project was started in at least the last 10 years, our existing workhorses, the Agus and Pulangi hydro electric power complexes, are already aging. (Although the Steag coal plant started full operation in Nov. 2006, the project was started in 2000.)

I am sure spinners of the 200mw Conal coal-fired power plant in Maasim, Sarangani and another 300mw coal-fired plant being planned to be put up in Surigao City by Korean investors will make their pitch in the business conference. And I would not be surprised if the expansion by another 150mw the generation capacity of the 200mw Steag Mindanao coal-fired power plant in Villanueva, Misamis Oriental will also be presented, with Aboitiz Corp. as its would-be investor.

Already, Aboitiz owns 34 percent of the Steag coal plant. Aboitiz company by the way, is in an investment frenzy in the energy sector. They already acquired the power barges in Nasipit, Agusan del Norte and Maco, Compostela Valley with a total capacity of 100mw.

We should take note that the acquisition of the power barges, former baseload power plants of the National Power Corporation (NPC), by the Aboitiz-owned Therma Marine Inc. which now operates as ancillary service providers in cahoots with the National Grid Corporation of the Philippines (NGCP), has been blamed for the almost 100-percent increase of power rates in Mindanao at a time that power supply service was at its worst.

But there should be no mistaking about these things, Mindanao really does not need those expensive and dirty fossil fuel-based power plants. It has vast renewable energy reserves with over a thousand megawatts from hydros, about 400mw from wind and unexplored potential in solar power.

In the pipeline are at least two big hydro power plant projects, the 300mw Pulangi V in the boundary of southern Bukidnon and North Cotabato and the 132mw Bulanog-Batang run-off the river (no dam) power plant in the Cagayan de Oro river. Several smaller hydro plants are being planned in Bukidnon, Compostela Valley and Zamboanga Sibugay.

Lately, non-government organizations (NGOs), among them the Freedom from Debt Coalition, have questioned the claim of power shortage in the island. It would be interesting to browse over the data set they are using to come up with such a claim.

But judging from their arguments, they seem to be echoing the arguments we were using in opposing the Mindanao coal-fired power plant about 10 years ago. Well, I do not want to be presumptuous but they owe it to the public to explain fully how they came up with those conclusions. Otherwise, we can surmise that they are just unnecessarily rabble-rousing.

I understand, they are using the argument of defective energy demand projection to boost opposition to the proposed power plants like the 300mw Pulangi V.

This is dangerous to say the least, as unlike in the 1998-2003 period when we campaigned against the building of the Steag Mindanao coal-fired power plant, we are now having load-shedding, proof of actual power crises.

Even Mayor Romy Tiongco of Damulog, Bukidnon is saying that framed on the greater interest of Mindanao, the Pulangi V project is very necessary. He also believes that the social issues levied against the Pulangi V project can be and should be mitigated. Those who know the mayor, a former priest and still a social activist even as a local politician, will have no doubt that he had thought of his stand quite thoroughly with the interest of the lumads and other communities to be affected in mind.

I do propose however for an inclusive and informed dialogue on the Pulangi V issue. It still remains to be seen if those who are opposing the project which have external support from NGOs like the Legal and Natural Resource Center (LRC) are willing to sit down to a dialogue with other power stakeholders.

I have met with officials of Pulangi V proponents in at least two occasions, during the power consumer forum organized by the Apostolate for Good Governance of the Archdiocese of Cagayan de Oro sometime last June and in the Alumni Homecoming of the St. John Vianney Seminary and I am of the impression that they are willing to reach out to all power stakeholders in the island.

Early on, I would have to ask the opposition of renewable energy projects like the Pulangi V if they have the same argument against the proposed 200mw coal-fired power plant in Maasim, Sarangani, the 150mw expansion of the Mindanao coal-fired power plants and the one planned in Surigao City?

On the other hand, saying that coal is cheap is false. Like crude oil, it is not insulated from the volatile price behavior of crude oil.

At the height of the crude oil price rise in 2008, reaching up to U$147 per barrel, the price of coal also rose from below U$50 per ton to over U$100 per ton.

This reality should prod our decision makers and power stakeholders to seriously pursue renewable energy development in Mindanao. And for businessmen to realize that investing in renewable energy is good not just for their profit bottomline but also to their social and environmental bottomlines.

Supporting renewable energy serves the long term interest of the consumers and business which will enjoy cheaper energy rates and addresses issues of climate change mitigation.

Renewable energy simply means cleaner, healthier and more productive Mindanao.

(Comments can be sent to bency.ellorin@gmail.com.)


Read part 1

Living with expensive electricity

Written by Marvin A. Tort / Sway

THURSDAY, 16 SEPTEMBER 2010 13:48

Lots of interesting developments in the power industry of late, but it leaves many people still wondering whether electricity prices will ever go down. The present situation begs the following questions: What will it take for electricity to become more affordable? And, are the power industry and the government in a position to bring down prices in the future? One cannot help but think that perhaps the situation is hopeless. Despite all the public complaints against high electricity prices, it seems businesses and households have no choice but to bear the heavy burden. Even if they are not happy with their current electricity suppliers, they have no one else to turn to. Consume and pay despite the price, or don’t consume at all. Take the case of Albay province, which is reportedly facing powerless days because of the fight of its provincial electric cooperative Aleco with the government-run Philippine Electricity Market Corp. (PEMC) over the cost of electricity. Simply put, if Aleco does not pay what PEMC is charging it for power, then Aleco—and Albay—can be disconnected from the grid. In May, Aleco filed a case against state-run National Power Corp. (Napocor) and PEMC for allegedly exorbitant billings. Aleco complained that for the period January 26 to February 25, PEMC billing for electricity sold to Aleco was up 300 percent from its previous billing. Aleco complained to the Energy Regulatory Commission (ERC), and the case is pending. Back here in Metro Manila, the Manila Electric Co. (Meralco) reportedly wants to charge its customers around P18 billion from 2011 to 2015 to make up for the regulatory “delays in the implementation of [its] rate adjustments,” and “constraints” that capped its rate increases in the past. But opposition by consumer groups to rate increases are part of the regulatory process. Why should Meralco benefit from it? The company made P7 billion in profits last year, up from P2.6 billion in 2008. It doesn’t seem to be in dire need of a rate hike, but it still wants to penalize consumers for even attempting to oppose rate increases? Does this mean consumers are better off accepting what comes, rather than questioning price increases? Consumer advocacy group Nasecore is even accusing Meralco of overcharging its customers by P14.2 billion over a period of five-and-a-half years, although Meralco regulatory affairs head Jose Ronald Valles said this allegation was unfounded and baseless, claiming that the fair rate of return for Meralco has been upheld both by the ERC and the Supreme Court. While PEMC and Meralco may both be in the right, and that maybe people just don’t realize how expensive electricity truly is, with the lack of transparency and accountability in the current regulatory process, and with the power business being very technical, one finds it difficult to tell who is telling the truth. And it’s not only Aleco and Nasecore that are complaining. The Davao City Chamber of Commerce and Industry had said it was studying Davao Light and Power Co.’s decision to increase its rates, noting that the local business community was always wary of increases in power rates. This was after ERC approved on July 15 Davao Light’s application to adjust distribution rates. Davao Light earned P872.9 million in profits last year, up from P591.9 million in 2008. Its revenues also rose to P7.4 billion from P6.5 billion. One group that seems to make sense is the town council of Isabel, Leyte. In what may be seen as a proactive stance by a local government to promote the interest of its constituents, the council of Isabel passed a resolution calling on the Department of Energy to grant Isabel “financial benefits,” as required by law, for hosting the Tongonan Geothermal Power Plants. Isabel also said its constituents should no longer be made to share in the expense of transmitting Tongonan’s excess power out to Cebu, Bohol, and Luzon. Tongonan produces 800 megawatts of electricity, but Leyte and Samar consume only 200 megawatts. The rest are exported out of the Eastern Visayas region to other consumers, and yet the region still shares in the expense of doing this through high transmission charges. Isabel added that its constituents should also be exempt from power rate increases resulting from foreign currency and oil price adjustments, as may be petitioned by power generators in the area, since the Tongonan Power Plants use geothermal energy, which is not affected by these two factors. In Congress, one lawmaker claims a solution to high power rates is to remove the 12-percent value-added tax on electricity. Senate President Juan Ponce Enrile, meanwhile, wants Congress to enact a law reducing the tax or royalty on the use of indigenous energy resources in the generation of electricity. However, such solutions may not go far given the flaws of the system. How inequitable is it that provinces like Leyte and Samar, while self-sufficient in geothermal power, is still made to bear foreign-currency and oil-price adjustments? Worse, their consumers are even made to bear part of the cost of transmitting surplus geothermal energy to Cebu, Bohol and Luzon. And the unkindest cut is this: even as consumers bear high electricity prices, state-run Napocor cannot seem to get out of its financial hole. In fact, Eastern Samar Rep. Ben Evardone now alleges that more than $12 billion in proceeds from the sale of Napocor assets and loans obtained to pay for its debts are “missing.” With all this, one cannot help but again ask: What will it take for electricity to become more affordable?

Bicol congressmen lash out at Aleco, NEA for additional subscription charges

LEGAZPI CITY: The Albay power cooperative is so far the worst among the worse electric cooperatives according to a Bicol party-list, as it also assails the National Electric Administration (NEA) for the woes facing its 250,000 consumers. 
Speaking on behalf of the Ako-Bicol party-list, which has three nominees, congressman Rodel Batocabe said NEA has not done its duty to avert the culture of abuses and gross mismanagement of the Albay Electric Cooperative (Aleco), which is now in the brink of total bankruptcy.

Aleco is rocked by disputes between the management represented by its board of directors and the employees union on issues of corruption and mismanagement.

Interviewed at radio station dwZR by anchorman Wally Magdasoc on Wednesday, the party-list solon said that power cooperatives like Aleco is part of the government-owned and -controlled corporations (GOCC), whose operation should comply the same process under the general auditing rules and the government procurement act.

Last week, the province of Albay shocked Aleco’s 250,000 consumers following its recommendation for an additional P1.66-per-kilowatt-hour increase in an effort to solve the woes of the cooperative after it got notice for disconnection on September 12. 

Gov. Joey Sarte Salceda of Albay said that the proposed rate increase was offered to solve the disconnection threat and prevent future disconnections, adding that Albay has the lowest power rate of P8.56 per kwh.

The Aleco disconnection threat was a result of its unpaid P982 million debts to the Philippine Electricity Market Corp. equivalent to 36 monthly installments. Department of Energy Secretary Jose Rene Almendras suspended the disconnection threat following an appeal from Salceda.

Salceda’s proposal for a rate increase was seconded by a resolution from the provincial board.

According to Batocabe, Aleco is being allowed to negotiate purchases on their own even without public bidding and control from NEA when government agencies including GOCC’s have the Commission on Audit as its watchdog performing pre-audit or post audit in compliance of the procurement act.

Meanwhile, six Bicol congressmen—Christopher Co (Ako-Bicol), Alfredo Garbin (Ako-Bicol), Edcel Lagman (first district), Al Francis Bichara (seconddistrict) and Fernando Gonzales (third district) have bonded together in opposing the proposed power rate increase. They said that the 250,000 consumers should be spared from the sins committed by the Aleco management. 

The Albay Consumer Watch, Bayan Muna and the Catholic Social Action Center also strongly condemned the rate increase proposal.

The ailing Aleco has been under the management of NEA for more than a decade that ended in 2006. In 2008, Aleco forged another “operation and maintenance” contract with the National Power Corp. (Napocor) for one year upon recommendation of Salceda to former President Gloria Arroyo in his bid to save the hallucinating cooperative.

Congressman Bichara, however, lashed at the Aleco board after it issued termination of contract at the time when Napocor was successfully heading over an impressive recovery for Aleco. 

The Napocor, Bichara said had asked for an extension of one year after its contract ended in June 2009 but was rejected by the Aleco board headed by Salceda’s lawyer Rodolfo Bonafe as chairman.

According to Batocabe, most cooperatives are successful in their operation owing it to sound management and less corruption, citing the case of Batangas and Leyte provinces.

Cebu asks for P4B from Aquino

CEBU CITY -- Business leaders in Cebu asked President Benigno Aquino III to fund P4.404 billion in infrastructure projects and raised six other concerns with him during his first official visit Wednesday.

President Aquino, in turn, assured business leaders there is a renewed interest among foreign investors to do business in the country.

"Cebu has been chosen as a center for creative industries in the Philippines by the British Council... Because of all of these, I foresee an increase in Cebu's call centers, graphic arts, animation arts and other industries. I also foresee significant increases in the number of tourist arrivals, which will in turn provide the climate for more successful entrepreneurs to thrive," Aquino said.

Aquino, who gave a brief speech at the Regional Economic Managers' Briefing and Dialogue shortly after noon Wednesday, assured the local business community they can take advantage of the country's positive economy.

"With your creativity, dynamism, initiatives and confidence, you here in Cebu and the whole of Region 7 (Central Visayas) are well poised to take advantage of this business and economic climate," Aquino said.

In terms of development, he assured that the Mactan-Cebu International Airport (MCIA) will be one of the areas that will see improvements "in the near future."

Aside from the infrastructure projects, the business groups in Cebu raised to President Aquino the need to enhance tourism in Cebu and in Central Visayas, reduce fuel and power costs, modernize the MCIA, establish a mass transit system, realize the Panglao International Airport and build a bridge linking the provinces of Cebu and Bohol.

During a short press conference with reporters, the President said he will review most of the concerns raised but found the plan to build the bridge linking Cebu and Bohol quite "ambitious."

He said he wants to get a cost-benefit analysis first.

But for the P4.404 billion in infrastructure projects for Cebu, the President believes there will be many private entities who are interested to fund these projects.

"P4.4 billion is not an insurmountable figure," he said.

Asked if it can be included in next year's budget, he said he will have to check the figures first.

The amount for infrastructure covers drainage improvement; widening, concreting and rehabilitation of national roads; flyover constructions; and rehabilitation of the first Mandaue-Mactan Bridge.

As for tourism, the business sector asked the Aquino administration to promote the "value chain approach" to develop tourism with the close collaboration of the tourism and trade departments.

Businessmen also raised concern about Cebu's fuel pump prices being higher compared to other parts of the country.

Aquino said he still has to review this.

As for power, they asked the President to reduce the price of power to make it more investor-friendly and to provide stable and sustainable power at the least cost, from investors to consumers, from renewable sources.

Business leaders asked the government to expand and redesign the MCIA to make it a premier international aviation hub.

To this, Aquino announced the administration will begin expansion of the airport to accommodate more flights.

As for a mass transit system in Cebu, he admitted there were some who are against the idea, noting that much of the land in Cebu is occupied.

He did not say who was against the project.

Asked if a bus rapid transit (BRT), which is being pushed by Representative Tomas Osmeña, is more favorable, he said he is yet to get a consensus.

A concern for setting up a mass transit system, he said, is if it will affect cultural sites, which is a "major come-on for tourism."

"We want to look at it if it can be practicable for the province and not just in the city," he told reporters.

Aquino did not commit to the seven proposals of the business community, saying he wants to make a careful study first to see if any of these can be done.

While the President was optimistic about the economic outlook for Central Visayas, he admitted there is still much to do, such as addressing the power situation and considering the liberalization of air transport to make it easier for tourists to come to Cebu and other parts of the country.

He noted that many foreign tourists try to make arrangements online but find it very difficult to finalize plans when going to the Philippines.

Aquino noted that some neighboring countries have 26 million tourists a year, when the Philippines has tourist spots comparable to those in other countries but only has three million.

"Getting there should not be an ordeal for tourists," he said. He admitted, though, that improving tourism facilities will take time. (MEA of Sun.Star Cebu)

Mayor opens Iloilo to other power suppliers

ILOILO City Mayor Jed Patrick Mabilog has welcomed the entry of other power suppliers in the city following reports that lone power distributor Panay Electric Company (Peco) is charging the highest rate in the entire country.

Mabilog said he is yet to meet with representatives of Peco, power generators Panay Power Corp. (PPC) and Panay Energy Development Corp. (PEDC), both subsidiaries of Global Business Power Corp., and Metrobank to discuss the issue as pointed out by consumer group Freedom from Debt Coalition (FDC).

Mabilog said if possible, he will request for reduction of power rates in the city that PEDC earlier promised. The rate would be lowered to P2 per kilowatt-hour (kwh).

He also said the City Government is issuing a yearly permit to all business firms, and may revoke or cancel the permit and license of erring firms not approved to operate by the city.

The mayor said the entry of other power suppliers, including renewable energy, may help in "shocking" Peco's high power rate, especially now that the government is looking into the feasibility of renewable energy in the provinces.

In Western Visayas, wind energy power is being harnessed by Trans Asia Philippines in the island province of Guimaras and construction is ongoing for a wind power technology in the municipality of Sebaste, Guimaras.

Agricultural biomass is the main fuel source of Global Green Power supported by the British Embassy with an ongoing construction of its power plant in Mina, Iloilo.

Another energy firm is also eyeing the river water power to produce energy in the province of Aklan.

PPC is using diesel fuel, while sister company PEDC is operating the first coal fired power plant in the region.

The FDC report showed the comparative monthly electric rates in Iloilo City as compared with other Philippine cities. Peco is charging P13.30 per kwh rate in Iloilo, while Manila has P10 per kwh serviced by Meralco.

The report also said that Davao City is served by Davao Light at P6.87 per kwh; General Santos City by Socoteco II at P5.46; Tacloban City by Leyeco at P7.14; Cebu City by Veco at P8.99; and Bacolod City by Ceneco at P6.43

Global electricity rates showed that Europe has P4.81 peso equivalent per kwh; Australia at P3.60; Canada - P2.70; China - P1.53; Taiwan - P3.37; France _ P4.59; Germany - P5.58; India - P1.75; Japan - P9.63; South Korea - P3.19; Russia - P0.22; Spain - P4.90; South Africa - P1.71; Sweden - P4.54; Thailand - P2.70; United Kingdom - P4.72; and United States - P3.82. (Lydia C. Pendon)

Pacquiao, environmentalists helpless vs Sarangani coal plant

Philippine Daily Inquirer
First Posted 23:29:00 09/15/2010

Filed Under: Philippines - Regions, Pacquiao, Environmental Issues, Environmental Politics, Environmental pollution, Coal

DAVAO CITY—It is one opponent Manny Pacquiao can’t knock out.
The coal-fired power plant in Pacquiao’s home province, Sarangani, is nearing completion and it appears no one, not even the Philippines’ most famous boxer, could stop it.
Edmar Derla, chief of the Department of Energy’s oil industry management division, said the coal-fired plant has been commissioned to supply 200 megawatts of electricity to southern Mindanao.
Exporters, in need of a stable supply of power for their businesses, have expressed concern over Pacquiao’s entry into the fray. The boxer-turned-politician has agreed to become a poster boy for the campaign against coal-fired power plants, one of the dirtiest sources of electricity.
But Derla said there was nothing Pacquiao, now a congressman, or anyone else could do to stop the project.
Derla said the project is already commissioned despite token opposition from the diocese of Koronadal.
He said the plant, being built by Conal Holdings, would help ease the shortage of electricity in Mindanao. Conal Holdings is a corporation that counts among its owners the Alcantara Group and the family of Sarangani Gov. Miguel Dominguez.
Derla said power outages in Mindanao at the height of the El Niño became a wake-up call for energy officials that too much dependence on hydropower isn’t good.
“It’s understandable because Mindanao gets 53 percent of its total power requirements from hydropower,” he said.
He said while Mindanao could count on at least 1,862 megawatts of electricity, mostly from hydropower, it still needs new power plants because its current demand for 1,241 megawatts was expected to grow by at least 4.3 percent every year.
By 2017, he said, Mindanao would require 660 megawatts more of power.
“Everything will be falling into place,” said Derla.Germelina Lacorte, Inquirer Mindanao

SMC raises stake in power, to put up 150-MW plant

By Doris Dumlao
Philippine Daily Inquirer
First Posted 20:52:00 09/15/2010

Filed Under: Company Information, Economy and Business and Finance

DIVERSIFYING San Miguel Corp. plans to put up a 150-megawatt power plant in Ilocos Norte as part of its plan to create a nationwide network of power plants fueled by liquefied natural gas (LNG).
In an interview, San Miguel president Ramon Ang said the installation of additional power generating capacity in Ilocos Norte would help lower electricity prices and likewise help spur the development of heavy industriesin the province.
Citing San Miguel’s studies, Ang said an LNG-fired power plant with an initial capacity of 150 megawatts would be feasible in Ilocos.
He said the conglomerate, however, had not yet identified the specific location for this new or greenfield project, which will benefit from the LNG import terminal to be put up in Bataan.
Being at the far end of the power grid, Ilocos Norte is vulnerable to power outages.
NorthWind Power Corp. operates a wind farm in the town of Bangui that can generate up to 33 MW, but it accounts for about a third of the power requirements of Ilocos Norte.
San Miguel, through its subsidiary San Miguel Energy Corp, earlier told the Philippine Stock Exchange it was considering to invest up to $8 billion to construct LNG facilities with a total capacity of 5,000 MW across the country, about half of which was to be put up between 2013 to 2015.
In Luzon alone, the plan is to put up additional capacity of 1,200 MW.
The conglomerate wants the power business to eventually make up a quarter of the group’s revenue.
In the first semester, its existing 2,000-MW power generation portfolio contributed P24.1 billion in revenue or about 11 percent of group-wide profit.
Ang said Ilocos Norte had a lot of potential to develop heavy industries.
On a personal capacity, Ang is taking over a limestone mining firm Ilocos Norte Mining Co. and putting up a cement factory in Ilocos Norte in partnership with Northern Cement Corp. of San Miguel chair Eduardo Cojuangco Jr.
He said the proposed cement plant would require an initial investment of at least $150 million to be able to produce one million tons of cement per year, initially catering to domestic construction requirements.
But he said the capacity could be eventually expanded to three million, potentially exporting some of its output to Taiwan.
Ang said he was in talks and hoping to close a deal with the landowners of the site for the plant.
He said construction of the proposed cement plant could start by December or January. He said the new cement plant may take two years to build.