DOE asserts power situation until 2011; allays crisis fears

The power situation in the country, particularly Cebu, will be stable even until 2011, said the Department of Energy allaying fears that there will be a power crisis by that time.

The DOE cited a report from the National Power Corporation stating that the present power supply is more than enough to meet the demand, and will be able to support the projected 5.7 percent growth in the economy.

In places where power demand has been increasing at a fast rate, such as in the Visayas, the NPC said several measures have been undertaken to improve the power supply situation.

Among these are maximizing the loading of the Leyte-Cebu interconnection submarine cable up to its rated capacity; ensuring the full commissioning of the Panay Diesel Power Plant 3; and defering the retirement of the Bohol Diesel Power Plant.

In the long term, however, Visayas still needs additional capacity of about 71 megawatts by 2008 but NPC said a coal-fired power plant, of Salcon Power Corporation and Korea Electric Power Corporation, is now being constructed to address this matter.

NPC isued a statement to clarify recent reports that the country may experience deficiency in its power supply by 2011 because no new power plants are being built.

The setbacks bugging the sale of generation assets are just part of the process of privatization, said the NPC, adding that the Power Sector Assets and Liabilities Management Corporation has addressed this too.

The PSALM is an agency, mandated by law, to oversee the sale of the government's transmission and generation assets, said the NPC.

The NPC also said that generation facilities have been undergoing regular maintenance and rehabilitation to keep them running in optimal condition.

"We have always maintained operational efficiency well above the normal standards...to improve our operations and increase plant reliability," NPC said, adding that a continuing program is set to rehabilitate and upgrade aging plants to maximize their output.

The country presently has an installed capacity of over 12,000 megawatts, which is more than enough to meet the peak demand of 6768mW, as forecast for 2006.

In the Luzon grid, in particular, NPC's generating plants have a rated capacity of roughly 9000mW, which amply covers the estimated system peak of about 7000mW.

Among the three major grids, NPC said Luzon has the most sufficient power supply situation because most power plants are located there.

"In the long-term however, we would still have to put in an additional capacity of about 71mW in the Visayas by 2008, and another 57mW in new capacity in Mindanao by 2009, to ensure adequate power supply in these two grids," NPC said. -Wenna A. Berondo/RAE