VECO exec: Phl needs new generation plants

CEBU, Philippines - While a number of new projects are already underway across the country, Visayan Electric Company (VECO) raised the need to build new power plants to sustain the buoyant trajectory of the Philippine economy in the years ahead.

“Open access was partially implemented in 2013 and this is a step in the right direction, where consumers have more choice insofar as their power supply is concerned. That solar photovoltaic generation is nearing grid parity in pricing is definitely good for consumers, investors and the environment,” he stated.

VECO chief operating officer Sebastian Lacson said in an interview with The FREEMAN that the country needs to encourage investors in building diversified generation plants and not just concentrate on baseload power plants. 

He added that investors, on the other hand, must know that there are reliable counterparties available in the Philippines with whom they could base their billion-dollar investments in the years ahead and continue building new power plants in the country. 

“Domestic financing is certainly available to viable projects. These days, financing will find the right project, not the other way around,” he continued.

Lacson further noted that the supply situation this year could be possibly stable until the summer season that is expected to have higher demand of power but occasional deficits in the Visayas grid.

“We hope by then to have secured additional supply in order to shield VECO customers from the effects of generation shortage. But by the time Unified Leyte plants are all on line, we will have nothing to worry about,” he said.

Two other power plants from Leyte such as the Tongonan Geothermal Power Plant and Unified Leyte were damaged at the height of super typhoon Yolanda.

Lacson also shared that this year’s Gross Domestic Product growth will be “very similar” with last year’s performance.

He said that the power distribution sector greatly benefits from a vibrant economic performance of the country especially taking into account its bullishness and confidence in the first half of the year.

He added that the industry shall continue to serve as one of the foundation for economic activities in the country.

“At VECO, we will continue to do our best to deliver the most cost-effective electricity in the most efficient manner to our customers, hopefully with the least adverse impact to the environment as possible. We will continue to invest in keeping our network flexible and reliable, ready for any and all eventualities,” he said.

Lacson said that despite the calamities that previously hit the country and caused a major shift on the upbeat performance of the power industry in the first three quarters of 2013, the sector was able to cope up by yearend and is projected to recover this year.

VECO posted a healthy growth of seven percent in terms of its energy sales until the month of October just before the super typhoon Yolanda hit the country. There was also a stable supply and relatively low prices in the spot market in Visayas last year.

It was only in the last quarter of 2013 that the region felt scarcity of power supply and inflation of prices after super typhoon Yolanda battered the country particularly Cebu, Leyte and Samar, hence causing damage to lateral lines and poles.

Good thing though, Lacson said, that the energy regulator intervened with an administered price for the spot market and VECO was able to get power feeds from Luzon plant to continue the power supply and solve rotational brownouts in its franchise area. /JOB (FREEMAN)