Economic growth putting pressure on energy supply

MANILA, Philippines - Economic growth is adding pressure for the grant of emergency powers to President Aquino to address a looming power crisis, Energy Secretary Carlos Petilla said yesterday.

He said at least 9,011 megawatts of power would be needed next year, higher than this year’s demand of 8,717 MW on the back of projected growth in the economy.

He stressed the need for the President to invoke Section 71 of the Electric Power Industry Reform Act of 2001 (EPIRA) as the economy is expected to grow by 6.5 to 7.5 percent this year and 7 to 8 percent next year.

He said granting the President emergency powers would accelerate efforts of the government to provide additional supply to the grid, averting possible power shortages or blackouts next year.

Under the proposal, the government, through the Power Sector Assets and Liabilities Management Corp., will rent bunker-fired generating facilities with a capacity of 30 MW each.

“We need to prepare early to ensure a steady supply of energy next year,” Petilla said.

He earlier said committed power projects for the early part of 2015 have been pushed back due to technical and regulatory issues.

The Department of Energy said there would be a deficit of 200 MW next year, making the energy supply thin by March to May 2015 – the months with the highest electricity demand.

Petilla suggested an additional 400 to 500 MW capacity to act as buffer supply during the peak months.

Wipe out

The looming electricity shortage, if not addressed, could wipe out the country’s economic gains under the Aquino administration, Valenzuela Rep. Sherwin Gatchalian said.

“The country’s new reputation as the next Asian miracle will go to waste if economic growth cannot go hand-in-hand with energy development. Rising industrial operations will have to be fueled with enough power supply, so a concrete blueprint to avert the looming power crisis is severely crucial if we want to keep our investors from transferring to other countries,” he said.

He said unemployment would likely worsen and government revenues decrease if shops shut down and relocate to other countries.

He added that the country has to solve its power problems if it wants to attract more investors, especially with next year’s integration of the ASEAN (Association of Southeast Asian Nations) region.

“To be competitive, we must assure foreign investors will find a hospitable environment for their businesses, and that includes not only easy processing of business permits but also providing enough power supply for their business activities,” he said.

Congressmen said they are willing to give Aquino emergency powers to address the projected power shortage.

Isabela Rep. Rodolfo Albano III has suggested that Aquino convene and consult the Legislative-Executive Development Advisory Council and Judicial-Executive-Legislative Advisory and Consultative Council on the proposed grant of emergency powers.

“We should involve all sectors of society and all branches of government to set clear parameters for the grant to the President and his exercise (of) emergency powers to solve the looming shortage of electricity,” he said.

Eastern Samar Rep. Ben Evardone asked the House of Representatives to give priority to Bill 3743, which he earlier filed and which seeks to give Aquino the authority to enter into contracts for the construction of new power plants.

“I fully support the proposal of Secretary Petilla. The fear of several quarters that the President might abuse the proposed special authority is totally unfounded. The emergency powers will be limited to addressing the acute power supply shortfall only,” he said. – With Jess Diaz, Mayen Jaymalin, Eva Visperas