Cebu has hidden capacity, but the cost is prohibitive

CEBU, Philippines - Cebu has a hidden power capacity, but this is not embedded into the Cebu-Negros-Panay grid due to its high cost of operation.

Roger Lim, general manager of Cebu Private Power Corporation and East Asia Utilities Corporation revealed this information during the regular session of the Cebu City Council yesterday where power players were invited to enlighten the members of the current power situation in Cebu.

“If the price is right, there is no shortage,” Lim said adding power players like the independent power producers are not allowed under the regulatory regime to sell the true cost of electricity.

Lim cited for instance that two gas turbines of Salcon in Naga with a combined capacity of 56 megawatts is currently shut down as operating it would cost between P17 to P19 per kilowatt hour.

He said, power distributor is only charging P3.40 per/kwh depending as to the time of use of the electricity.

Yesterday morning and in the afternoon, Cebu sustained a combined 171.34 MW power deficiency and another four MW power shortage during the evening peak.

But Ed Satina, vice president for operations of Global Power and Cebu Energy Development Corporation said that Cebu’s power shortage will be mitigated as CEDC’s Unit 2 that has a capacity of 72 MW will be synchronized into the CNP or Visayas grid last night and will be embedded into the grid this morning.

CEDC’s Unit 1 with a capacity of 82 MW was shut down due to some deficiency.

Both units are currently under testing and commissioning.

Aside from this, the Cebu Thermal Power Plant II in Naga with a 50 MW capacity will be back on the grid next week.

Ricky Lacson, VECO vice president for customer services and administration said that with the cooling of the temperature, power demand now starts to reduce.

VECO spokesperson Ethel Natera said that as of 2 p.m. yesterday, there were no more brownouts due to power shortage.

Satina added that since the rainy season is now approaching, we can expect a reduction of 30 MW to 40 MW in the power requirement of Cebu.

Lim further said that by 2013, the gas turbine in Toledo with a 50 MW capacity will “retire” obviously due to old age. — THE FREEMAN