By Joann Santiago
MANILA, (PNA) — Is the Philippines’ robust domestic growth threatening power capacity in the island of Luzon?
Will this put the economy’s growth trajectory in limbo since Mindanao is currently experiencing power shortage?
Not much since the Department of Energy (DOE) is now considering solutions to address possible power outages in the country’s largest island group, Energy Secretary Carlos Jericho Petilla said.
A one or two-hour brownout in any of the peak hours namely 11am, 2pm and 7 pm is the worst case scenario is being considered.
In the first half this year, the domestic economy grew, as measured by gross domestic product (GPD), by 7.6 percent, higher than the 6.4 percent same period in 2012.
Domestic expansion in the second quarter this year at 7.5 percent as well as in the first half is higher than the government’s full-year target of six to seven percent.
Petilla said the sustained growth of the economy is a good thing since it provide necessary boost to people’s lives among others.
He, however, said the DOE was aghast with the expansion since the department’s projection two years ago is a growth of about 6.6 percent.
He said this is the level of growth the Energy department was looking at when several major power projects were approved a few years back.
Some of these projects are now being constructed but these will not be finished as early as 2015 to provide additional capacity, he said.
Thus, the problem is how to fill the gap from this year until 2015, he said.
Petilla, however, assured the public that there are power plants, some of which now under construction, to be built and set to be operational by 2016 onwards.
“There will be additional plants but it is (going to be online) in the wrong time…These will not be finished three years from now so what we’re addressing is the capacity two years from now,” he said.
DOE data shows that for this year alone, committed projects are expected to provide 703 megawatt (MW) in Luzon. It is an additional 20 MW for 2014 and 146MW in 2015.
Indicative projects this year alone is eyed to provide 593.2 MW capacity while it is 1,069.5MW for 2014, 1,726.6MW in 2015 and 1,190MW in 2016.
Petilla only hopes that these indicative projects push through to ensure that Luzon electricity needs will be provided well.
Among the solutions the DOE is currently considering are the institutionalization of the reserve market and disallowing power plant to have maintenance works during the summer.
Petilla explained that the proposal to put up a reserve market has been submitted before the Energy Regulatory Commission (ERC) in 2009 but this remains a proposal.
He said the proposal is facing some regulatory issues but he is firm on pushing for its approval within the year.
He said the program, to be implemented in coordination with the Philippine Electricity Market Corporation (PEMC), will be announced soon but he did not elaborate.
The reserve market is expected to provide at least 400-600 megawatts (MW)initially.
Petilla said they plan to do a simulation on the possible scenerios two years from now and results of this will be presented to the ERC.
Earlier, the DOE chief said the department is considering solutions similar to those being implemented in Mindanao for the island of Luzon but these do not include loans to be extended to electric cooperatives for the purchase of modular generation sets or renting out gen sets.