Customers cannot understand why two 50-mega watt barges lie idle because of a dispute between NGCP (former Transco) and the owner of the barges. The customers' concerns are not safeguarded. The rains have come and the lakes are full but some of the turbines need servicing and repairs. Customers are now supposed to suffer two and a half hour brown outs until the machines are repaired. With former Vice Pres. Pelaez after he was shot, we ask: "General, what is happening to our country?" (In our case: What is happening to Mindanao? Who is looking after the interests of its citizens?) We welcome the new Secretary for Mindanao, Lualhati Antonino, with a basketful of power problems to solve. In conjunction with Mindanao Business Conference (sponsored by a cluster of City Chambers of Commerce which many participants and observers considered successful), a one day forum on the power crisis was held at Xavier University. In line with the Dept. of Energy targets of supply sufficiency and proper pricing, electricity was thoroughly discussed. What surprised many was the number of power projects in the drawing boards, (from one mega mini hydros to 300 mega coal turbines). Mindanao will have sufficient power, three to five years from now.
The problem is next year and the year after that. (It takes three to five years to put up an energy source.) A revelation was that the eastern part of the island is wet when the north west is dry. Mindanao can, then, be sufficiently serviced by hydros provided they are properly located. Another learning was the existence of numerous volcanic hot stones in many places on the island from where to source geothermal power that can complement the hydros. Another is the estimate of Cepalco that solar would cost only about double the hydros per megawatt, (namely, from $3.5 to $4 million dollars per mega watt). Solar has constantly improving technology and lowering of price. One problem is that it will not produce power at night. On the demand side, the need projections were put at 100 new mega watts per year for the next six years just to keep up with the growth as in the past. However, new industries are targeting Mindanao, especially mining which will need an extra 1,000 megas, just for the mines already in the drawing boards. As mentioned, the coal- fired turbines will probably provide the supply after three to five years including the possible ship building that was aborted by the recession two years ago. With these private sector plans, the government agencies have only to facilitate actual power construction and make sure they are not delayed unnecessarily with local regulations. Since the supply seems assured as planned, the next concern is the ERC determination of the Fit Tariff prices. It is rational to give extra incentives to those who will not pollute the air or will not require foreign exchange in the importation of fuel.
This Tariff pricing was supposed to have been announced last month but the new administration needed time to evaluate it. The promise for release is in early November. A number of projects in Mindanao, Palawan, and Mindoro have been awaiting this pricing so they can start to build. Other concerns are the privatization of the Agus and Polangi hydro complexes, the unbundling of costs according to power sources, the dredging of Pulangui IV, the link between Surigao and Leyte (or the Visayas with Mindanao), the need to increase the energy reserves from 21% to 40%, and finally transparency so customers can figure out what they are paying for.
