Power firms discuss Mindanao supply situation in BDO forum

MANILA, Philippines - Major power producers serving the Mindanao grid have assured additional capacity to come in next year. However, they continue to underscore the value of conservation to counter the region’s current situation of declining electricity reserves.

Speaking at the Energy Forum hosted recently by BDO Unibank Inc. in Davao, Aboitiz Power Corp.  (AP) chief executive officer Erramon I. Aboitiz said that while there would be new supply coming in the first half of 2015 from their power generation facilities, conservation remains an effective measure to thwart threats of a decreasing reserves.

“Conservation is one. Also, what we’d like to ask all the consumers is to be pragmatic and to realize that if we do want adequate and reliable power, then we have to be willing to pay the price of reliable and quality power. We always say that the most expensive power is no power. If subsidies or lower cost of power is something that we expect, then I think we stand the risk supplies not coming in as needed,” said Aboitiz to the Forum’s more than 500 attendees.

STEAG State Power Inc. (SPI) president and CEO Dr. Bodo Goerlich, meanwhile, raised concern on the possible onset of the El Nino phenomenon at the start of next year. Despite this looming threat, he said, STEAG’s 210-megawatt (MW) coal-fired power plant in Misamis Oriental would exert effort to run at full capacity.

Like Aboitiz, Goerlich stressed the importance of energy saving. “We experienced in Germany that the biggest source of energy is energy saving. In the Philippines, I think it should start with taking a look at the Building Code. Maybe bring in more rules on building insulation as that would mean less energy requirements.”

For its part, the Alcantara Group, led by president Nicasio I. Alcantara, is completing a 105-MW power facility in Saranggani which is targeted to come on stream next October. Phase 2 of the said facility is eyed for completion in 2016. Other hydro- and solar-based power facilities have also been lined-up as additional undertakings.

“Directionally, I think we will have good power plants that are coming up in the next three to five years. I think the solution is having enough reserves. What we are looking at now is something around 13 percent by the end of 2016. That’s assuming the growth rate in Mindanao is running at around four percent. If we get a boom, then we will have to double up the capacity,” said Alcantara.

Energy Undersecretary Raul B. Aguilos expressed optimism the additional capacity targeted to be on stream in 2015 would be on schedule. “I have no doubts in my mind,” he said. He was quick to add though that for electricity supply to stabilize, all the stakeholders in the power sector “have to help each other to address the concern”.