Wednesday, October 08, 2008 DLPC warns of power crisis, pushes for Hedcor projects
A CITY Council committee will recommend for Davao City’s endorsement of the proposed power plants of Davao Light and Power Company (DLPC) following its warning of a looming power crisis by 2010.
DLPC officials were present during Tuesday's session to brief the council on the power problem.
According to DLPC, Mindanao inexorably headed towards power crisis of serious proportions and neither government nor private sector seem to have come up with definite plan to avert crisis. Thus, they are pushing for a Mindanao Alliance, composed of Local/National Government, Mindanao Business Council, Chambers of Commerce, media and civic groups to study the matter.
DLPC said the projected power shortage will affect the major cities of Mindanao: Davao, Cagayan de Oro, General Santos, Butuan, and Zamboanga.
At present, the total dependable capacity of power is at 1,510 megawatts with a demand 1,280 megawatts. But an increase in demand is projected to reach 1,763 MW by 2014, thus a lack of 519 MW.
From 2009 to 2014, Mindanao's capacity will fall below safe reserve requirement of 13.1 percent prescribed by the Philippine Grid Code.
DLPC said that aside from its sister company Hedcor, no other private investor has the commitment to build new or expand from 2009 to 2014.
This includes the Hedcor investment to build 42.5 MW hydro plant in Sibulan, Davao del Sur (expected by 2009), and 27.MW hydro plants in Tamugan, Davao City (expected by 2010).
However, they cited plans of other companies that are not yet confirmed. These are the 8 MW hydro plant planned by Cagayan de Oro Electric Power & Light Co.; 150 MW hydro plant in Bulanog Batang, Northern Mindanao planned by number of electric cooperatives; 200 MW coal plant in Cotabato planned by Alcantara Group; and the expansion plan of STEAG coal plant capacity in Misamis Oriental by 200 MW.
To totally avert the crisis, power plants capable of generating 519 MW -- i.e. additional capacity of 310 MW by 2009 and 210 MW by 2010 -- must be built.
They added that it takes 38-40 months to construct power plant and investments required to build power plants amount up to the following: Coal Plant - $1.8M to $2.0M per MW; Hydro Plant - $4.0M per MW; Diesel Pant - $1.3M per MW.
DLPC said the biggest challenge for Mindanao and its leaders is to attract investors to build, starting 2009, power plants with total capacity of 519 MW.
Councilor Pilar Braga, chair of the Energy Committee, said that as far as the city is concerned, it could not afford to wait for the National Water Resources Board (NWRB) to resolve the issue between Hedcor and the Davao City Water District (DCWD). The latter insists on its water rights obtained years ago, thus not allowing Hedcor to build its hydro plants on the basis that it might affect water quality.
"If we wait for them. We are bound to wait forever," Braga said of NWRB.
"We have to fast track the proceedings so we can act on the power shortage problems. My committee is ready to present its reports and endorse the application," Braga said. (GLP)
