Aquino earmarks P1.3B for rural electrification

Wednesday, February 1, 2012

PRESIDENT Benigno Aquino III recently approved the release of P1.31 billion for rural electrification program in Mindanao.

This was announced before the 1st Mindanao Congress of the Advocates for Renewable Energy and Rural Electrification and Development (MinCARED) organized by the Association of Mindanao Rural Electric Cooperatives (Amreco) Thursday.

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National Electrification Administration (NEA) administrator Edita Bueno said the program shall benefit 100 barangays and 1,320 sitios in the island-region.

She said the government shall provide for the distribution system including the supply of kilowatt-meter to beneficiaries.

She added that the beneficiaries from the sitios will receive P2,500 subsidy from NEA.

The amount is enough for them to buy two bulbs and two outlets, as well as pay for the installation fee, according to Bueno.

“It is rather difficult for people from the sitios to cash out for the said materials and pay for the installation fee,” she said.

Bueno said, however, that the beneficiaries are capable of paying the monthly bill which would amount to P75.00 at the minimum.

“The new lines shall be turned over to electric cooperatives in the long run,” she said.

As of November 2011, the Department of Energy (DOE) reported that in terms of barangay electrification, Mindanao is already 99.84 percent connected.

The rural electrification program is hoped to generate jobs and stimulate small businesses in the country side which are among the priorities of Aquino’s social contract with the Filipino people.

While the rural electric cooperatives in Mindanao welcome this development, Amreco president Sergio Dagooc said the rotating brownout as a result of load curtailment by the National Grid Corporation of the Philippines (NGCP) is a major blow to their customer service.

Mindanao is now confronted with “red alert” status since the start of the year as a result of supply shortfall by 100 megawatts which prompted South Cotabato II Electric Cooperative (Socoteco II) to implement 45-minute to one-hour rotating brownouts within its franchise area: the whole of Sarangani, Polomolok and Tupi in South Cotabato.

“Power consumption in Mindanao has been steadily increasing at an average annual growth rate of 4.7 percent from 2002-2009”, said Secretary Luwalhati Antonino, Mindanao Development Authority (MinDA) chairperson, during the second day of the congress.

She added that in the second quarter of 2010, the average and peaking capabilities of the hydro power plants at 982 megawatts dropped to 771 megawatts and 860 megawatts, respectively, resulting to four to six hours of daily brownouts in several areas during that year.

Antonino emphasized that the demand would increase by an average of
4.6 percent annually over the next ten years.

“To meet and sustain this demand, at least 1,000 megawatts new capacities must be installed over the next decade and still another 1,500 megawatts from 2021 to 2030,” she said.

Antonino said there is a need to ensure a dependable power supply in Mindanao and install a reliable power generation system that maximizes renewable energy and efficient distribution mechanism.

The Mindanao 2020 Peace and Development Framework Plan (Mindanao 2020) being pursued by MinDA has pointed to diversification as a recognized strategic move to cushion the impacts of supply shortfalls.

“However, this must veer more towards increased use of clean, renewable and indigenous sources of power to minimize costs attendant to importation, foreign exchange risks, and environmental impacts,”
Antonino added.

She said MinDA will continue to do its share of making the necessary representation before the National Government in collaboration with Mindanao local government units, private sector and industry stakeholders.

Signed into law on February 17, 2010, MinDA is mandated to advocate for polices that will foster Mindanao’s integrated and balanced development.

MinDA aims to accelerate the socio-economic growth of the island-region by increasing its trade and investments, encouraging private enterprise and advancing efforts towards peace and development.

“All these years, energy and power infrastructure plans, programs and projects were largely prepared and decided upon in the national capital,” said Antonino.

Along this line, MinDA will ask the House of Representatives through the House Special Committee on Mindanao Affairs and Committee on Energy to investigate the power shortage which gained strong backing from the Mindanao electric cooperatives. (PR)