DOE chief: Visayas regions need more electricity

MANILA, Philippines - The Department of Energy chief on Wednesday told foreign businessmen that there is a need for more power in the Visayas regions which needs an additional 115 megawatts in reserve capacity. This came during a presentation at the American Chamber of Commerce (Amcham) where Energy Secretary Angelo Reyes revealed that the islands of Cebu, Negros and Panay are suffering supply shortfall during the peak demand periods of May and December. In the same forum, Reyes confirmed the commissioning of two power plants - the 200-MW Kepco coal and 20-MW Nasulo geothermal Project - will be moved to 2009. "The generating capacity, [for the Visayas grid] however is enough to cover the demand although the reserve margin will only be 19 percent," Reyes. Reyes said that Leyte, Samar, Cebu and Bohol will not require any capacity addition given the geothermal power supply from Leyte. On the other hand, Negros will require an additional 7 MW, 9 MW and 43 MW capacity for October, November and December. He said that Cebu - during the same months - would need less. Panay will immediately require 31 MW capacity addition in May and another 10 MW and 16 MW in September and November, respectively, being at the tailend of the power supply chain to avert power interruptions therein. According to Reyes, the problem is being tackled by the government through the Power Supply Review Committee. Among these measures being eyed includes the lease/rental of 30 MW Diesel Generator modular sets with TransCo assistance on recovery and ERC approval of appropriate rates (shortest but most expensive option) and the increase loading of TransCo’s Leyte Cebu submarine cables from 360 MW to 370 MW. Reyes added that other possible options they are considering are: Transco procurement of ancillary services from embedded generators; Introduction of Interruptible Load as an ancillary services and Operation of the Wholesale Electricity Spot Market (WESM) in the Visayas after review of existing rules (as means for existing embedded generators to offer their capacities at market prices). He also said they are also looking at the private sector participation in putting up fast track power projects as well as the possibility for government to utilize seized smuggled diesel generator sets at Subic. - GMANews.TV