Energy Dept. asks power utilities to hasten rehab

The Energy Department is asking existing power generating companies to hasten their rehabilitation programs to alleviate the power shortage plaguing the country. “I have given two or three letters already to the companies who have bought government assets pleading with them to please accelerate the rehabilitation," Energy Secretary Jose Rene Almendras said this weekend. National Grid Corp. of the Philippines data as of Oct. 9, 2010 revealed that Visayas and Mindanao had deficiencies of 141 megawatts (MW) and 108 MW, respectively, while Luzon had reserves of 686 MW. The department expected that the country will need at least 300 megawatts (MW) this year and 300 MW by 2012. Particularly, Almendras said he had asked Lopez-led First Gen Corp. to fast track the rehabilitation of power plants they acquired from the government through the Power Sector Assets and Liabilities Management Corp. Almendras was referring to the 150-MW Bacon-Manito or BacMan geothermal power complex in Bicol region and the 100-MW Pantabangan hydroelectric power facility in Nueva Ecija. “Pantabangan is going to be up… soon. We’re assessing BacMan because it just got turned over so we’re assessing on what’s to be done," Federico Lopez, First Gen chairman and CEO, said in a separate interview. To boost power supply in the country, Almendras said the Energy Department is also eyeing to allow the government-owned and -controlled corporations to put up diesel and gas-fired power plants. Almendras reiterated that he looks forward to fresh investments pouring into the country as the government has offered US businessmen at least 32 traditional and renewable energy projects. “In addition to the AES deal, there have been other companies especially on the renewable energy [sector] that are very interested," he said, noting that some of the 32 projects offered are new and some are already with service contracts but would want to have partners. The AES Corp.’s $1-billion expansion project for the 600-MW Masinloc forms part of the $2.4 billion worth of investments President Aquino and his team were able to raise during their US trip in September. — With Jesse Edep/VS, GMANews.TV