MANILA, Philippines – The total power generation capacity of local energy projects in the pipeline have already increased from last year, indicating more investor participation in the sector.
New generation capacity totaling 1,172 megawatts (mw) will be added to the country’s main grid by 2015, data from the Department of Energy (DOE) showed. It is already up by nearly a third from 886 mw last year.
“Indicative” power projects, which are under different stages of project development like feasibility study and are still subject to financial closing, jumped from last year.
DOE said these projects’ generation capacity, which might start increasing available power for the main grid by 2018, gained by seven percent to 5,023 mw from 4,683 mw.
In the Power Development Plan 2010-2030, the Luzon grid would need some 11,900 mw of additional power.
Some 2,150 mw and 2,500 mw of new generation capacity are needed for the Visayas and Mindanao grid, respectively.
DOE Undersecretary Josefina Patricia M. Asirit said the government should generate enough investor confidence in the sector to avert a power crisis. “[Investors] should be able to come in and get a return on investment that is viable for them,” Asirit said.
For Luzon, “committed” projects, in which the proponents have already complied with necessary permits and clearances of various agencies and have already secured financing needs, rose to 654 mw of capacity from 600 mw as of last year.
Green Future Innovation’s biomass plant and CIP II diesel plant will increase generation capacity by 13 mw and 21 mw, respectively, this year while GN Power’s coal project will add 600 mw next year.
“Indicative” power projects also climbed to 3,534 mw from 3,448 mw last year.
These include the 86-mw Burgos Wind, the 11.2-mw Unisan Biogas, 20-mw Maibarara geothermal and 300-mw Energy World’s natural gas project that might start operations next year.
In Visayas, “committed” projects are now at 232 mw from 186 mw last year. For instance, the 8-mw Villasiga hydroelectric plant and the 20-mw Nasulo geothermal plant will start operations this year and the next, respectively.
“Indicative” projects jumped to 692 mw from 654 mw. It includes Trans-Asia Oil and Energy Development Corp.’s 35-mw Guimaras wind project next year and Green Power Negros’ biomass project next year.
For Mindanao, “committed” projects like the 8-mw Cabulig hydroelectric plant and the 50-mw Mindanao Geothermal-3 of Energy Development Corp. now total 286 mw from 100 mw last year.
“Indicative” projects reached 797 mw from 581 mw last year. These include the 225-mw 300-mw Aboitiz Power Corp.’s Davao coal project in 2014 and Agus-3 hydroelectric plant in 2015.
The Mindanao grid, which currently needs an average of 1,300 mw, lacks 50 mw to 270 mw resulting in two to four hours of rotating brownouts since January.
“Before 2014, the tightness in supply in Mindanao can be addressed with the more expensive generation capacities,” Asirit said.
Conglomerates like the Ayala Group, San Miguel Group, First Pacific Group and Filinvest Group are pursuing various ventures in the capital-intensive energy sector.
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By: Neil Jerome C. Morales
Source: The Philippine Star, March 19, 2012
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