Contrary to past expectations, Energy Secretary Jose Rene Almendras on Monday said that Luzon will begin experiencing energy shortages as early as next year. “The truth is next year we will already have a shortage. We will be short by our estimates, by at least 300 megawatts (MW) next year," Almendras said at the Senate hearing on the 2011 Department of Energy (DOE) budget. He said 300 MW is still within the allowable energy shortage but some power players have warned that the energy shortage may actually be 100 to 200 MW more. “That is true if the predicted La Niña [weather phenomenon] will not bring in the water that the hydros will need," the energy chief said. The Energy Department expects a peak demand of 7,900 MW for next year, Almendras said, noting that in the summer of 2010 the energy demand peaked at 7,600 MW.
To address the problem, Almendras said the department is looking at privatizing some government-owned power plants so that the new owners can restore the facilities’ original installed capacity. “It is the shortest, fastest solution to all those companies that have already bought the power plants from us to rehabilitate as fast as they can," he said. Almendras also said the Energy Department plans to draw power from Visayas to Luzon using the new coal-fired plants in Cebu and Panay. The department also plans to issue an order enabling the DOE to harness undispatched hydro power and those from the diesel barges in Mindanao to boost the supply for Luzon. By the end of 2011, the department aims to close a generation project in Mindanao to address the energy requirements of 2015 and 2016, Almendras said. A P1.37-billion budget was allotted for the Energy Department next year. — JE/VS
