Govt warns of brownouts in 2014 due to tight supply

The Energy Department warned Thursday that Luzon may face brownouts in 2014 unless new baseload capacities are built starting this year. It said Luzon’s power reserves were also expected to be tight starting next year.

Energy Secretary Jose Rene Almendras told reporters coal-fired power project had received strong resistance from local governments because of environmental concerns.

“All the coal projects… are having difficulties. We will have brownouts in 2014. Don’t blame me if you don’t want coal. I need a base load generation capability of 600 megawatts for 2014 and 2015,” Almendras said.

Almendras said the 600-MW power plant must be coal-fired to serve the baseload or the daily requirement of the Luzon power grid.

“We should not build peaking plants. We should put up base load plants to lower our generating cost. Baseload is cheaper,” he said.

He said the 600-MW plant needed by 2014 to 2015 must be built no later than 2012 because construction takes about three years.

Almendras said two power plants, namely the 600-MW coal project of Redondo Peninsula Energy, a joint venture between Manila Electric Co. and Aboitiz Power Corp., and the 600-MW Masinloc power plant expansion of AES Corp. of the US were poised to start construction in the next few months but encountered opposition due to environmental issues.

AES plans to add another 600 MW to its existing 600-MW plant in Zambales.

“AES could not commit [when to expand] because of permitting problems,” Almendras said.

He said coal was the only feasible alternative to serve the baseload capacity needed by the grid.

“We don’t have the terminal for LNG. The Malampaya project is fully utilized. We have to find geothermal resources. Hydro takes time to build,” Almendras said.

He assured that the government would step in to avoid a power shortage.

“If national interest is not protected, then the President will exercise its powers. But we’re hoping that we will not get there,” the energy chief said.
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By: Alena Mae S. Flores
Source: Manila Standard Today, Sept. 9, 2011
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