PNOC geothermal project in Negros to augment Visayas power supply

BAGO CITY, Negros Occidental — The geothermal project of the Philippine National Oil Company (PNOC) here is seen as an answer to the looming power crisis, with its projected additional power capacity of more than 40 megawatts.

Gino dela Cruz, resident manager of the PNOC-EDC Northern Negros Geothermal Power Plant, said the P8-billion project is expected to be completed by the end of this year and will start commercial operation in January 2007.

The project, which covers 169 hectares, is located at the periphery of Mt. Kanlaon Natural Park in upper Bago and Murcia towns.

Once operational, the plant will supply the needs of Northern Negros which gets bulk of its electricity from the Palinpinon geothermal plant in Valencia, Negros Oriental.

In its market review and analysis, PNOC said power demand in the Visayas is expected to hit 1,346 megawatts this year and forecast to expand to 1,550 megawatts in 2008. Negros needs 246 megawatts to supply its requirement this year but its demand is expected to reach 273 megawatts by 2008.

Dela Cruz said the Northern Negros plant cannot address the total requirement of the province but the additional power to be generated will be a big help to ensure a stable supply.

Meanwhile, the Northern Negros geothermal plant will be PNOC’s first merchant plant because it will no longer supply the National Power Corp. with energy coming from steam but will generate power and provide transmission directly to utility companies and not just Napocor.

Construction manager Rudy Pol said that while drilling and well testing are ongoing, the company has already started building the power plant that will convert steam energy to electricity.

These activities are costing PNOC $8,000 daily but it expects a return on investment in three years with a projected annual income of not less than P2 billion.

The project will also result in $15 million annual savings from oil exports for the country, PNOC said.