6 sites eyed for new power plants

The National Power Corp. (Napocor) has identified six primary areas nationwide as potential sites for establishing new power facilities, a top energy official said.

"We have come up with our own in-house engineering studies. We have already pin-pointed some of the areas where power plants can be set up," Napocor president Rogelio Murga told The STAR.

Murga said based on their internal studies, Isabela and Ilocos Norte would be best suited for either coal or liquefied natural gas (LNG) facilities.

In addition, he said investors may consider putting up coal-fired power plants in Naga, Cebu, South Cotabato, and Sultan Kudarat.

Murga said Napocor has decided to conduct an internal engineering study while still firming up the terms of reference (TOR) for the bidding of consultancy services for the more intensive engineering studies the Department of Energy (DOE) has mandated.

"We are finalizing the TOR of the bidding to get a consultant. We will have the bidding in the next few days," he disclosed.

Murga said Napocor needs additional funding to accelerate the engineering studies so these can be completed by August, instead of September as earlier programmed.

"These studies will be funded internally by Napocor. We are also trying to realign some of our budget to be funneled into these studies," he said.

The DOE has directed Napocor to conduct intensive engineering studies to convince investors to pour in much-needed capital to build new power plants in the country.

The results of the studies could guide investors in determining the best area and the best time to put up these power facilities.

A power shortage, which was expected in the Visayas late last year, was averted through joint private and government-led initiatives in meeting the power demand in the region. Mindanao, meanwhile, is expected to need additional power by 2005 and Luzon by 2008.

Should there be no action done this early, officials said a repeat of the power crisis in the 90s would be possible. It is estimated that it would take at least five years to put up a new power facility.

Based on the Electric Power Industry Reform Act, Napocor will no longer be allowed to build new power plants.

"We need the private sector to use these feasibility studies and put up these power plants. This is for the private sector to take the lead," Energy Secretary Vincent Perez added.