DOE: Visayas power supply stable

CEBU, Philippines - Contrary to earlier reports about power problems in the Visayas and Mindanao, the Department of Energy (DOE) clarified that there is no power outage in Visayas.

An earlier report published in the Philippine Star stated that alarms were raised over power outages in parts of Visayas and Mindanao according to consumer rights advocacy group Government Watch.

However, based on DOE’s press release dated March 7, 2012, power supply remains stable with an available capacity of 1, 757 MW, a year-to-date peak demand of 1,375 MW, and a reserve power supply of around 380 MW, with the recent commercial operations of new coal-fired power plants in the region having a total capacity of 601 megawatts.

DOE added that Mindanao hydropower plants are already running in optimized available capacity.

“However, considering the future lower rainfall forecast in Mindanao, we cannot rely solely on hydropower plants. Non-hydro base load is immediately needed and this will only happen if everyone cooperates,” Energy Secretary Jose Rene D. Almendras said.

There are also available generation capacities that are not being utilized because they are not contracted, or when contracted, are not being dispatched.

From DOE’s evaluation, there are also distribution utilities and electric cooperatives that do not contract enough power supply for their actual needs and have thus been overdrawing power, causing problems in grid management.

“We cannot blame their hesitation because there is existing generation in Mindanao that are not being contracted,” Secretary Almendras said.

Furthermore, the Mindanao grid has experienced frequent red alert notices from the National Grid Corporation of the Philippines, which led to actual power curtailments on some parts of the grid.

Projected peak demand in the region is at 1,300 MW while available capacity for Mindanao is only at 1,110 MW excluding the 200 MW from the power barge of Therma Marine, Inc.

In addition, NGCP, according to DOE, has already been instructed to respond to technical upgrades necessary so the distribution system will shift to a mandatory curtailment from voluntary curtailment.

DOE is already setting up meetings with the Energy Regulatory Commission, Mindanao legislators, and already consulted concerned agencies such as the NGCP, National Power Corporation, the Power Sector Assets and Liabilities Management Corp., electric cooperatives, and other stakeholders for a Circular that will be issued by the DOE regarding the current Mindanao Power situation providing a short-term solution for Mindanao as it did in 2010.

Meanwhile, Visayan Electric Company (VECO) clarifies that Visayas has nothing to worry about amidst reports of power outages since the region has sufficient power supply.

Unlike in Mindanao, VECO spokesperson Ethel Natera said that VECO's franchise area is not experiencing rotation brownouts due to power supply shortage.

“We are forecasting a 5% increase in kWh sales in 2012 versus 2011 and are confident that VECO's existing power supply contracts are enough to cover these needs. We expect no power supply shortages in our franchise area in 2012. However, in view of the continued growth and progress in our franchise area, VECO is always in talks with potential power suppliers that will provide energy for the coming years, energy that provides reliable power at a competitive price with the least possible adverse impact on the environment,” she told The FREEMAN.

 Natera added that the region may have emergency outages or scheduled brownouts due to maintenance or system upgrade but not related to power supply and VECO shall notify the public in advance for such power interruptions.— (FREEMAN)