Solution to Mindanao’s hydropower problem can be ‘an act of God’

Written by Manuel T. Cayon / Reporter

Wednesday, 03 March 2010 20:19

Conclusion Power summit recommendations DURING the island-wide power summit held at Grand Regal Hotel on Feb. 18 in Davao City, the participants recommended various actions that included: • Expeditious repair of Agus 2-Kibawe 138-kiloVolt (kV) Lines 1 and 2 by the National Grid Corp. of the Philippines (NGCP); • Expeditious commissioning of the Maramag-Bunawan 230-kV backbone project by NGCP; • Expeditious commissioning of the Sangali-Pitogo 138-kV line in Zamboanga by NGCP; • Expeditious repairt and upgrading of the facilities of the National Power Corp. (Napocor) and Private Sector Assets and Liabilities Management Corp. (Psalm); • Dredging of Pulangui 4; • Possible livelihood or opportunities for the silt taken from Pulangui (e.g., brick making); and • Settle issues with the local government unit with regard to the re-operation of the Plant 1 of the 60- megaWatt (mW) Iligan Diesel Power Plant by Napocor/Psalm; Plant 2 (40 mW) for immediate rehabilitation to include, among others, spare parts and operator. The following commitments were also issued: • Stakeholders to fully cooperate in ensuring that there will be adequate and reliable supply of electric power in the Mindanao region; • Stakeholders to cooperate and assist in resolving power-emergency situation in Mindanao and work out schemes to achieve this purpose; • Stakeholders to agree on specific timelines and deliverables in implementing the commitments or projects considered during the meeting; • Psalm to study the privatization approach for Agus and Pulangui either full or operation and management arrangement; • Possible supply-augmentation scheme through the injection of power by embedded generators, with request for Department of Energy (DOE) intervention for cost recovery; • Invoke Section 71 of the Epira law to address the supply situation in Mindanao; • Conal Holdings to pursue the following projects: Maasin, Sarangani 2x100-mW clean coal power plant (unit 1 to be completed in the third quarter of 2013 and unit 2 by the first quarter of 2014); and Zamboanga 100-mW coal-fired power plant to be completed by the fourth quarter of 2014; • Mindanao coal-fired thermal power plant 210 to do the following: run in full load; defer preventive maintenance schedule of unit to June 10 from the original schedule of February 2010, in view of the current power- supply situation on the island; and to ensure adequate supply of coal; • Cagayan de Oro City Electric and Power Light Co. (Cepalco) to complete the following projects: 8-mW Cabulig Hydro (2011); Bubunawan Hydro in 2013; and Tagoloan Hydro in 2015; and • DOE to seek confirmation with Energy Development Corp. on the proposed 50-mW expansion of Mount Apo geothermal power plant. Impact on the country FOR the most part, the power problem has been limited to Mindanao with a declared deficiency of 358 mW as of last week, while the Visayas and Luzon are already on their relatively normalized mode. But Calabio said any major energy crisis could have serious consequence on manufacturing and other industries contributing to the economy. “The impact would be reduced production; worse, there would be no production at all.” Socoteco’s Ocat said consumers in the General Santos and Sarangani areas have differing opinion at how the power tripoffs should be implemented. “The households wanted the current staggered implementation of the brownouts in three phases at one hour each episode. The industries wanted a one time three-hour brownout.” Davao del Sur also suffer three-hour brownouts. It is only in Davao City which sustained a shorter 30-minute brownout due to the operation of the 57-mW Bajada Power Plant. The Davao del Norte Electric Cooperative (Daneco) has to impose a two-hour brownout spread at one-hour duration twice a week. The NGCP has curtailed its supply to Daneco by 20 mW, which the company said could be big enough for a franchise with a normal 58-mW supply. Davao Light’s supply was curtailed by 60 mW on Feb. 9 that went up to as much as 82 mW last week. The tourism sector has already pitched in for whatever it could contribute. Mary Ann Montemayor, chairperson of Southern Philippine Tourism Congress, said the different establishments may promise to switch off power on certain hours of their daily operations. Calabio said the power problem should heighten again the need to build more power generation that does not rely entirely on the hydroelectric power. “Whether we like it or not, even the Steag Coal [in Cagayan de Oro City] and Alson’s coal plant [in Sarangani] could be appreciated.” “We should now consider raising power rates now, because what is a blessing for Mindanao, is also becoming a curse,” he said. Asked how many investors were lining up to build new power-generation projects in Mindanao, Calabio said, “None are interested.” “None ever thought of it. How could they be lured here when it is profitable to operate in Luzon than here, when it is the same cost to build it anywhere?” he said. Based on the April 2009 comparison of rates, Davao Light was collecting P6.5871 centavos per kiloWatt- hour, while the Veco in Visayas was collecting P7.2276 and the Manila Electric Co. collecting P9.3203. Act of God “Pray not only for rain, but for the rain to fall in the right place,” Calabio said, “and that means in Lake Lanao and around the watershed area of Lanao del Sur.” “This is not a situation that the NGCP has brought about. It is an act of God,” he said. “We only transmit what Napocor would be able to generate and because we know the capacity of the grid, we have to curtail power where it should be curtailed to protect the entire grid.” He said the emergency situation could be solved by now by an event of rain “but it would come anytime in May or July.” “Between now and the rains to fall, we have to find the solutions,” Nocos said. Dureza has already made the Medco as the central office in monitoring the power situation and all the activities of the Mindanao Power Alliance.