Oversupply of power by 2015: DOE chief-A A +A
Saturday, August 17, 2013
MINDANAO may be experiencing a power crisis at present, but by 2015, the Department of Energy (DOE) is worried that there will be an oversupply of power on the island.
This, as DOE Secretary Jericho Petilla said, who guested at the recently concluded 22nd Mindanao Business Conferences held on August 8 and 9 at the SMX Convention Center, SM Lanang Premier.
This may sound like a positive development to the power crisis on Mindanao, but Petilla is worried that oversupply of power may detract investors.
"Oversupply is expensive because if you have extra capacity and no off takers then you have stranded capacity and might discourage future investors. We cannot have an oversupply because it is simply expensive especially if it's market driven," Petilla explained.
In his presentation, Petilla said that as of May 2013, Mindanao has a supply of 1,614 megawatts (MW) of dependable capacity compared to the forecasted demand prior to 2015, which is around 1600 MW to 1700 MW.
With the completion of the 300 MW coal-fired Therma South Energy Project by March 2015 and the 200 MW Southern Mindanao Coal Fired Power Station by September 2015, an additional 500 MW will be added to the Mindanao grid, thus providing the island with around 2100 MW while the demand by then will be around 1600 MW to 1800 MW only.
"At times there is a little bit of shortage and oversupply. Once the power normalizes in Mindanao, it will be a series of playing catch up," Petilla said.
There will also be an additional 2351.6 MW that will be added to the grid if the indicative power projects become committed projects.
Published in the Sun.Star Davao newspaper on August 17, 2013.