Philippine Energy News

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Wednesday, February 08, 2006

Gov't seen not addressing Mindanao power supply problem

Business World, Saturday, January 8, 2005

DAVAO CITY -- A business leader in Mindanao is wary over how the government is addressing the power problem in the island, saying projects that have been implemented will not solve an impending power supply shortage.

"We are a bit wary, we need more investments in Mindanao on [the] power industry," said Romeo Serra, Mindanao Business Council vice-chairman.

Mr. Serra explained that while the construction of the 200-megawatt coal-powered project is going on in Northern Mindanao, its operation will only start next year, while the impending power problem is seen to start this year. "We are happy with the implementation of the project, but that is not enough.

The government should look for more sources so that it can address the long-time requirements of Mindanao," he added.

But Mr. Serra said Mindanao's power requirements were projected to reach critical level this year, particularly if the El NiƱo, or the dry spell, hits the island.

Mindanao is relying mainly on hydroelectric power plants in the Lanao region, although there are power barges and small independent power producers all over the island.

Aside from setting up the power plants, the government should also fast-track the setting up of redundant transmission lines in order that blackouts caused by transmission line tripping be minimized, he added.

Earlier, an official of the National Transmission Corp. (Transco) admitted that there were problems in the transmission lines within Mindanao that caused tripping resulting in blackouts.

A Transco paper also said that Southern Mindanao's power consumption has been increasing between 7% to 8% a year and that its peak demand sometimes reaches up to 495 megawatts, or nearly half the 1,074 average daily consumption for the entire island.

Mindanao is producing about 1,336 megawatts a day, mainly coming from its aging hydroelectric plants and power barges.

Mr. Serra said that instead of setting up the power plants elsewhere, the government should concentrate on setting up these plants in Southern Mindanao because it is the main consumer of power.

Mr. Serra said the government should immediately look for other alternative power sources and implement projects that are within its priorities, like the coal-powered plant being planned in Sultan Kudarat.

"Otherwise, we will see a bigger problem if the government fails to address this," he added. -- Carmelito Q. Francisco

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