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Tuesday, July 25, 2006
Speakout: Existing energy resources
By Melvin Purzuelo
Responsible Ilonggos for Sustainable Energy (Rise) convenor
WISE and efficient use of existing energy resources in the Visayas grid will relieve Iloilo City from the agony caused by one of the most expensive electricity rates in the whole of Asia. The Visayas grid is currently exporting to the Luzon grid about 200 megawatts (MW) of the cheaper and less pollutive renewable geothermal energy and Negros Island is increasing geothermal energy production by 68 MW this year.
Iloilo City is the center of trade and services in Western Visayas. The whole region suffers when the city stagnates because of unreliable and exorbitant electricity costs. There is no other reason for this suffering except corporate greed and lack of political will.
Demand of Iloilo City for baseload energy is only 30 MW, while all the other electric cooperatives in Panay and Guimaras totals to about 40 MW. There is an existing submarine cable from Negros that can carry 80 MW of geothermal energy to Panay that will be expanded by another 80 MW next year.
Mayor Jerry Trenas should immediately work for the implementation of the Energy Regulatory Commission (ERC) order for Peco to reconnect to the Visayas grid and ensure that geothermal energy is accessible for the baseload demand of Iloilo City.
Metrobank, which now fully own the Panay Power Corporation (PPC), if it is sincere in providing reliable and efficient power to the industry and citizens of Iloilo should immediately allow the renegotiation of their contract with Peco to reduce the minimum guaranteed electrical quantity (MGEQ). Their contract provides for renegotiation in any event that PPC cannot provide reliable services competitive with other bulk suppliers in the grid.
The Peco-PPC amended power purchase agreement provides that Peco guarantee to pay for 373 million kilowatt-hours (kwh) yearly that is equivalent to about 31 million kwh monthly. The actual consumption of Peco consumers last year was 340.6 million kwh or averaged 28.4 million kwh per month.
For the reconnection with the Visayas grid to serve its purpose of providing Iloilo City with affordable and reliable electricity, then Peco must access at least 20 MW of geothermal energy from Negros. This needs the reduction of the guaranteed energy from PPC-Metrobank by 14.4 million kwh per month. We need less of PPC electricity and more of renewable geothermal energy.
(July 25, 2006 issue)
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