National Transmission Corp. (Transco) president Alan Ortiz said that by operating geothermal plants, the government could save as much as P7.2 billion a year in fuel costs in the Visayas alone.
"Cebu does not have hydro (energy) so we explore geothermal. So as a matter of necessity, we explore renewable energy sources," he said.
Ortiz said that among the projects that they are focusing on is the construction of the Leyte-Mindanao interconnection, which is expected to provide additional 200 to 400 megawatts to Mindanao.
He said the Philippine National Oil Co. and the Energy Development Corp. are now exploring geothermal fields in Cabalian, Leyte to determine the size of the steam field there.
Ortiz said the 42-kilometer submarine cable would extend from Cabalian to north of Ormoc, Surigao del Norte and end up in Misamis Oriental and is expected to increase the power supply in Mindanao.
According to Ortiz, the project is targeted for completion in 2008, but the development and construction alone would take about five years.
The project was discussed a long time ago but was deferred due to financial concerns.
The estimated original cost of the project was $400 million, but Ortiz said they would reduce the cost by installing only a set of submarine cables, instead of two, from Leyte to Mindanao.
With just one set of transmission cables, the cost of the project would be reduced to half.
Meanwhile, Transco officials also announced that before the end of the month, the Leyte-Cebu interconnection uprating project, which is expected to double the carrying capacity of the existing cables from 200 to 400 megawatts, will be inaugurated.
Wenifredo Pangilinan, Transco vice president for engineering, said the project is expected to be energized by Aug. 23.
He said all the equipment in their cable terminal stations in Tabango, Leyte and Talisay, Daanbantayan, Cebu have been tested and readied for operation.
"We can say with great pride that we have resolved the power situation in Cebu and the rest of the Visayas," Ortiz said. — Freeman News Service