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The Energy department sees Mindanao facing a 200-megawatt (MW) shortage next year unless new generation capacities are put in place.
"I am looking at an almost 200 MW shortage next year. Now, Mindanao has, at the most, bare reserve requirement, and over and above that you have to prepare for additional demand since there are a lot of businesses setting up in the region," Energy Secretary Jose Rene D. Almendras told reporters on Friday last week.
He added "if there is no new generation [capacity] by next year, there [will be] a definite shortage in power in Mindanao during the dry season."
Parts of Mindanao have been experiencing a few hours of brownouts in these past months.
The Energy department issued a department circular in April hoping to address the shortage. The circular cut minimum required reserves to around 100 MW from 250 MW to free up capacity.
Latest estimate on the National Grid Corporation of the Philippines Web site put Mindanao’s reserves at a thin 97 MW, with 1,160 capacity against a peak demand of 1,063 MW.
But the current situation is still better than in 2010, when a dry spell forced hydropower plants, which provide more than half the island’s electricity needs, to shut down. Power deficiency then approached 600 MW, resulting in outages of as long as 10 hours in some areas.
Most of the new power generation plants being built in Mindanao are expected to be completed by 2014.
"The additional generation we are looking at is the use of power barges that are yet to be privatized as well as the privately owned ones which will be transferred to Mindanao. We are also working with the Energy Regulatory Commission to revisit the rates for embedded generation to sell power to the grid so it will be more attractive," Energy Undersecretary Josefina Patricia M. Asirit said in a telephone interview on Sunday.
The privatization of diesel-fired power barges 101-104, with a generation capacity totaling 128 MW, failed last week after only bidder submitted a proposal.
Mr. Almendras said the government is "studying how to deploy the barges."
A special board meeting of the Power Sector Assets and Liabilities Management Corp. will be held this week where options on the barges will be identified.
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By ENJD
Source: BusinessWorld, May 21, 2012
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