Philippines: Energy department lists sites for new power plants

Philippines: Energy department lists sites for new power plants

THE DEPARTMENT of Energy has identified seven sites in Luzon, four in the
Visayas and three in Mindanao as sites to build new power plants with total
capacity of 1,500 megawatts (MW) and corresponding transmission lines to
accommodate the new facilities.

"Every year we should be building our supply based on the projection of
demand," Energy Secretary Alfonso G. Cusi told reporters on the sidelines of
a forum last week.

For instance, power plant projects meant to meet 2021 demand should now be
under construction.

Power source developers have said it takes hundreds of permits to initiate a
project, while construction itself takes up to four years depending on
technology used.

"It takes time before you realize that," Mr. Cusi said.

In Luzon, he said the department has identified the seven sites for 850 MW
of new capacity, namely: Sucat, Muntinlupa (300 MW); Malaya in Rizal
province (300 MW); Labo, Camarines Norte (50 MW); Bay, Laguna (50 MW);
Lumban, Laguna (50 MW); Naga, Camarines Sur (50 MW); and Daraga, Albay (50
MW).

For the Muntinlupa plant, the department has identified the need for a 115
kilovolt (kV) transmission line. Malaya will require a 230 kV line, while
the rest needs 69 kV transmission lines.

In the Visayas, the total capacity needed is 350 MW, of which Compostela,
Mactan and Corella will each have 100 MW and 138 kV transmission line. The
rest is for Calbayog at 50 MW also with a corresponding 138 kV line.

The three areas in Mindanao for a total of 300 MW are San Francisco, Sultan
Kudarat and Pitogo each with 100 MW and a corresponding 138 kV transmission
line.

Mr. Cusi said the department remains technology-neutral, saying this detail
will be left for power plant proponents to offer. He also said they should
be guided by the country's requirement of sourcing 70% of power from
baseload plants, or those running on coal, natural gas and geothermal power
on a 24-hour basis; 20% from "mid-merit" facilities that can be switched on
easily when demand jumps and 10% from "peaking" plants that run mainly on
oil and renewable energy resources like wind and solar whose output peaks at
around the same time that demand reaches its highest level.

The new plants form part of the department's projection that the Philippines
will need 43,765 MW additional capacity by 2040 to meet demand, according to
the economy's current growth trajectory.

The government targets gross domestic product (GDP) to expand by 6.5-7.5%
this year and by 7-8% starting 2018 from 2016's actual 6.9%. Socioeconomic
Planning Secretary Ernesto M. Pernia last week reiterated his personal
estimate -- first aired in early-May -- that second-quarter GDP growth could
have come closer to 7% even as first-quarter expansion disappointed at a
slower-than-expected 6.4%.

Mr. Cusi said power demand projections are based on the current
administration's infrastructure program that involves construction of
airports, railroads and transport networks all over the country.

"The infrastructure buildup... that would boost demand for electricity and
power," he said.

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Link to Original Article:
http://www.bworldonline.com/content.php?section=TopStory&title=energy-depart
ment-lists-sites-for-new-power-plants&id=146630

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com