Another power crisis to hit Cebu by 2015

CEBU, Philippines - Even if Cebu will have enough power by next year, it is bound to face another power crisis by 2015 if there will be no other power plants to start this year or if the existing power plants will not expand.    

This is the projection made by Department of Energy secretary Jose Rene D. Almendras during the 2010 Energy Investment Forum hosted by DOE at the Parklane Hotel, Cebu City yesterday.

Almendras said the total 400 megawatt base-load capacity that will be supplied by the Cebu Energy Development Corporation (CEDC) and Kepco next year will provide Cebu with excess power supply, however, such excess cannot sustain the surging demand within the next three years or four years.

Ideally, by late next year, there must be another base-load plant that will open in Cebu, or existing plants must expand their capacity or the government-owned plants should be rehabilitated in order to avoid another power crisis.

He said Cebu is growing so fast, and the demand for power is also doubly-growing. “There is a lot of interest coming in to Cebu. The province can go faster,” he said emphasizing that there is a need for Cebu to act now, in attracting new power plants, or expanding capability base load of existing plants.

Naturally, he said Kepco and CEDC will be inclined to expand or rehab some of the existing government assets to add additional base load capacity of Cebu at least by 2015.

On the other hand, aside from inviting investors to invest on new power plants to save the Visayas or even the entire Philippines from experiencing a severe power crisis, DOE Almendras is now pushing for promoting energy efficiency as a lifestyle.

Adopting an energy efficient lifestyle could save a huge chunk of energy for consumption.

Earlier, East Asia Utilities general manager Roger Lim said that Cebu could have avoided the power shortage problem if the Cebu-Negros-Panay Grid capacity is being maximized, and the Wholesale Electricity Spot Market (WESM-Visayas) had been allowed to commercially operate.

Cebu-Negros-Panay Grid can carry a maximum of 400 megawatts (MW) and now running only at 360 MG.

Almendras also vowed to fast track the implementation of the WESM before the end of this year, as the business sector had been demanding for its commercial operation.

According to Almendras, the current power demand here in the Visayas region is growing annually by 5.4 percent, and as the economy grows, consumption of electricity also grows—“usually at a faster clip.”

At present, the dependable capacity in the Visayas alone is at 1,505 MW while peak demand is at 1,430 MW, with a required reserve margin of 335 MW.

“Clearly, this growing need for energy only means more opportunity for our partners in the private sector. We must continue to invest in exploration, development, and production—while at the same time maintaining high standards of management and minimizing environmental impacts.”

It is a challenge therefore he said “for all of us” including private sector— stakeholders and partners in the energy sector—to ensure an enabling environment in a sound climate where clear-cut energy policies will accelerate energy investment activities in the country.

“Despite the energy challenges we encounter, we remain optimistic and we look forward where power outages will be a thing of the past,” he said. (THE FREEMAN)