DOE moves to avert impending power shortage in Panay

The Department of Energy (DOE) is looking at the possi-bility of relocating some National Power Corp. (Napocor) gas turbines and diesel plants from Luzon to Panay Island to solve the impending power shortage in the area within the year.

These plants include the 30 megawatt (MW) Sucat gas turbine (GT), 120 MW (4x30 MW) Limay GT, 90 MW (3x30 MW) Malaya GT and 110-MW Pina-mucan Diesel Power Plant.

Three of these power plants – Sucat, Limay and Malaya – were earlier eyed by DOE for conversion into natural gas-fired power facilities.

The relocation of the Luzon land-based GT and diesel units is part of the immediate solution to address the Panay power problem.

The DOE did not say if these power plants will continue to be converted into gas-fired facilities once these are trans-ferred to Panay.

Electricity peak demand in Panay is projected to increase by an annual average rate of seven percent from 178 MW in 2002 to 190 MW in 2003 and 204 MW in 2004 and will further climb up to 220 MW in 2005. Total dependable capacity in Panay currently stands at 138 MW with an additional 60 MW transfer capacity from Negros.

Energy Secretary Vincent S. Perez said since there is no current program for additional power capacity in Panay, there is an urgent need to immediately put up additional capacity in the near term.

To meet the projected de-mand for electricity, Perez said an additional 140 MW genera-ting capacity needs to be installed by 2004 while a total of 360 MW of additional capacity is needed for the next 10 years.

To ensure the implementation and monitoring of this under-taking the DOE has created a task force composed of representatives from the Power Sector Assets and Liabilities Management Corp., Napocor, National Transmission Corp., National Electrification Administration and the DOE.

Aside from promoting the use of new and renewable energy, the DOE will also look into the possibility of reviewing the electricity rates in the Visayas which apparently turns off investors. At present, the generation charge in the region amounts to P2.06 compared to true market value of P3.60 to P4.30 per kilowatthour.

As a last resort, the government, through Napocor will serve as the "supplier of last resort" to ensure that the continuity of power supply in the country in the event that no private sector will put up the required additional capacities. – Donnabelle Gatdula