Ibazeta drafts to-do list for new energy chief

Energy Secretary Jose Ibazeta drafted his list of things to do for the new secretary of energy that will be appointed by President-elect Benigno Aquino III, saying the sector is now focusing on renewable energy. "Whoever it is, the incoming secretary will go on the next phase of the DOE, which is the renewable energy area," Ibazeta told reporters at the launch of Shell's Eco-Marathon Asia. Ibazeta was appointed by outgoing President Gloria-Macapagal to replace Angelo Reyes, the energy secretary who resigned to run as representative of 1-UTAK partylist in the May 10 elections. The department has approved dozens of renewable contracts that entail billions of pesos worth of investments. Investors are keenly watching the development of the feed-in tariff mechanism or the rates that will be charged against each type of renewable energy technology, according to him. "They are now looking into the feed-in tariff but we're still trying to sort it out. My personal feel is renewable energy projects blend well or is much better in SPUG [small power utilities group] areas like Mindoro and Masbate, among others," he said. The new secretary, according to him, should look at how to bring down the cost of power in far-flung areas where the household density is smaller and the rates more expensive on a per person basis. "So we're looking at the rules and on how it can work because it will have a long lasting effect on the rates... That's what we're doing now. Thus, if it cannot be finished, I think the new energy secretary should continue focusing on the Renewable Energy Act ," he said. Oil and gas Ibazeta said the Aquino administration should also focus on the developments in the Philippine oil and gas exploration sector. "Exxon is very active in the Sulu Sea and are going into their third well. Tindalo has also indicated that their stem flow yielded positive results in terms of barrels per day. Hence, you see there is activity also in the oil exploration," he said. There is also a need to continue monitoring gasoline and diesel prices, though global oil prices seems to have stabilized and there are ongoing programs for energy efficiency and alternative fuels, Ibazeta added. "That seems to be all set. There also should be programs on the demand-side of fuel, you just can't spend and import, but you also need to look at how to save on the use of fuels," he said. The new secretary, he said, should put in place policies that will guide the monitoring of generating plants and the cost of power that they generate. "The most important is policy as it relates to the implementation of how we monitor generating plants and prices. That's something we're doing now, where we're looking at ways of addressing that issue," he said. "We now have a completely different scenario where National Power Corp. is no longer existing," he said, explaining that private investors with a different mindset are basically looking at efficiency and markets. "And once we have open access, the environment will also be different… We have to set up the stage for that," he said. He explained that government should monitor players in the power industry. "You cannot just buy a power plant and do nothing. When you buy a power plant you're part of the system," he explained. Mindanao power problem The new secretary should pursue the construction of a submarine cable that will link Visayas and Mindanao to address the power shortage in the south. "Mindanao, continues to be a problem, though fortunately rains are starting to pour there. There is just a little gestation period as we're filling up the dams, so the usual 459-megawatt (MW) shortfall before is now just around 250-MW and the brownouts are just around 3 to 5 hours," Ibazeta said. "By August power supply will be fine," the official said. The long-term solution is to set up the Wholesale Electricity Spot market in Luzon and in the Visayas, with a submarine cable laid between Leyte and Mindanao, the outgoing energy chief said. He explained that once the WESM - the trading floor where electricity is bought and sold – and the submarine cable are in place, power from the Visayas can be delivered to Mindanao during drought. The situation can then be revered when there is ample water to run Mindanao’s hydro power plants, with the south supplying surplus energy to the Visayas, Ibazeta said. —VS, GMANews.TV