Mindanao needs coal-fired plants - Aboitiz executive

MANILA, Philippines - Mindanao needs coal-fired power plants to ensure the sustainable supply of power in the island group, an industry executive said.

Manuel Orig, first vice president for Aboitiz Power Mindanao, stressed that Mindanao’s hydropower plants can no longer sustain the region’s growing power needs amid the seasonal occurrences of drought that hamper their operations.

Aboitiz Power is proposing to build a modern coal-powered plant that uses clean coal technology to create the balanced mix of energy portfolio.

“Modern coal-powered plants today are designed and built so that they meet international standards for safety, health and environment protection. We are proposing to build a $450-million (P15-billion) circulating fluidized-bed coal-powered plant in Davao. This coal-powered plant, together with existing hydropower facilities, will provide enough power generation for Mindanao consumers, businesses and industries,” Orig said.

He said concerns on the safety and reliability of coal-powered plants have been based on the notion that coal-powered plant technology has remained the same over the past 50 years.

“The reality is, present clean coal technology is so much safer, healthier and environmentally protective. The coal-powered plants that people usually think of are the old ones from the 1950s and 1960s. Since then, clean coal technology has been developed to ensure that coal-powered plants have minimal impact on the environment. They are also much safer to operate and protect the health of surrounding communities,” he said.

According to Orig, Mindanao must rely on a mix of energy sources. “This is because hydropower alone is not enough to meet Mindanao’s power needs, especially when there is lack of water due to long droughts,” he said.

He said there are several identified sources of clean renewable energy.

“These energy sources provide us electricity without causing harm. Hydropower is one of them. However, not all types of renewable energy are ideal for Mindanao at present,” he said.

He noted that other forms of renewable energy are too expensive to develop. “The other types are too expensive at the moment. If we use them at the present time to meet our power needs, they would only put an unnecessary burden on the public. Hydropower and modern coal-powered plants are ideal for Mindanao at present because they are both safe, environment-friendly and protect the health of the community-and they are more affordable for consumers,” he added.

He said Mindanao cannot survive with only one major source of power.

“They are the right mix of energy sources for Mindanao at this time, not only to meet power needs but also to propel Mindanao’s economic growth,” he added.

Orig also pointed out that Aboitiz Power’s power plants have shown remarkable performance in meeting international environment, safety and health standards.

“The proposed Davao power plant will continue maintaining those standards. Our company has been in Davao for more than 50 years. We consider ourselves part of the community and so we will make sure that the community will benefit from this project,” he said.

Orig cited the example the 200-megawatt STEAG State Power Inc. power plant (where Aboitiz Power has a 34-percent stake) in Villanueva, Misamis Oriental, which has been operating since 2006, and has continued to meet government and world-class safety, environment and health standards.