THE VOICE OF BUSINESS IN NORTHERN MINDANAO

Friday, August 12, 2011

Butuan City wants NG to install solar farms to address power-supply woes

12 August 2011
Paul Anthony A. Isla / Reporter
THE Butuan City government on Thursday blamed the unstable supply of
electricity in Mindanao that has forced some businesses and industries to be
on standby mode.
To address the shortage, Butuan City Mayor Ferdinand Amante Jr. urged the
national government to kick off the setting up of solar farms in Mindanao.
Amante said the government could take advantage of the short gestation of
solar-power technology as businesses in Mindanao are stagnating due to the
unstable supply of power.
Amante's statement came a week after the Philippine Solar Power Alliance
(PSPA) claimed that the recurring brownouts in Mindanao could be fixed by
solar power with the shorttime frame needed to deploy such technologies.
He said Butuan City has incurred an income of P220 million in end-July
coming from a P23-million deficit.
"We fear we may lose our gains unless the stability of electricity is
restored. Tourists and investors are not coming to Mindanao because of
persistent power shortages," he said.
Amante said inadequate power supply has caused recurring brownouts in most
provinces in Mindanao, particularly in the Caraga Region, Iligan, Cotabato
and Davao, as power-reserve levels remain low at only 100 megawatts (MW)
during peak hours.
He said the National Grid Corp. of the Philippines has even implemented this
month a grid-wide power-load reduction in Mindanao due to insufficient
generation from power plants.
According to the reports, Amante said 92 MW to 150 MW have been withdrawn
from the grid as a result of the forced outages of generating facilities.
Mindanao's power-generating capacity is heavily reliant on water supply as
about 50 percent of the electricity generated is sourced from hydroelectric
power plants.
Dennis Ibarra, PSPA president, earlier said the process of putting up solar
power plants is the fastest among all energy technologies.
He added that a 10-MW solar power plant can be installed and commissioned in
just six months or even less because it does not have fuel or other
environmental concerns.
Ibarra said the time needed to deploy the solar power projects is shorter
than fossil fuel-based, large hydroelectric, geothermal power projects and
other renewable-energy sources.
"The speed of deploying solar power plants can be attributed to over 40
years of installation and connection experience by established companies now
keen on investing in Mindanao. Local and international solar companies can
produce at least 400 MW of electricity to deal with power shortages if the
government allows them," he said.
As of May 2011, Ibarra said 40 local and international project applications
were submitted to the Department of Energy (DOE). He added that these
projects, if allowed to produce 10 MW each, can generate 400 MW of clean and
renewable power.
He said the power-supply shortage has been causing intermittent outages in
Mindanao throughout the year and that reports indicate that power-reserve
levels remain low at only 100 MW during peak hours.
Ibarra said Mindanao's power-generating capacity is heavily reliant on
weather and water supply as about 50 percent of the electricity generated is
from hydroelectric power plants.
The DOE, however, has put a 50-MW cap on solar energy installation target
for three years.
Thus, the PSPA has been appealing to the DOE to increase its installation
targets to 269 MW instead of 50 MW.
"The Renewable Energy Act of 2008 does not prioritize or discriminate
against different renewable-energy technologies, but calls for a balanced
set of technologies, along with their distinct features and applications,"
Ibarra said.

1 comment:

  1. Hours of sunshine Caraga. Butuan : 6, cloud cover 6.0 out of 8, effective wattage/m2 640 W/m2 to 800 W/m2 for PV that is 486 kWh/m2 year as absolute maximum. For a 5 MW that is about a 10 hectares of land, PV panels only, multiply by 4 to get enough power in for continues supply and some storage area (could be molten salt in a rock formation). Anyway count on a 50 Ha area close to town, the users of the power.
    If put in a far flung area, not to disturb expansion of the cities, add another 5 ha to compensate for transmission losses.
    Ground mounted panels, incl installation come at a $3000/kW (installed power). Add a $400/kW substation, $ 800/kW for the storage, $2800/kW for a 1 MW backup and one ends up with a $72 million installation. Or a $ 14,400/kW, if it runs for a 20 years without a hitch power price will be around a P 4/kWh (installation only).
    Roof mounted will be a bit more expensive, at a $5000/kW, but at least you are not using land: under the roof there are buildings with enough space to store the energy, no need for extra substation. Cost of power will rise a bit to a P 6/kWh.
    Now for the cost of money, seriously, we talking into a range of a $75 to 100 million and that does not come cheap with loads of guarantees: Double the amount for the power price to a P 8 to
    P 12/kWh.

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