Thursday, May 14, 2009

Visayas Power Trip-Off May Turn Off Investors


Sen. Chiz Escudero said the government should fast-track the development of alternative energy sources to mitigate the effects of a looming power shortage and boost sustainable growth.

"We have already been given a peek into what it would be like in the Visayas following the recent 10-hour blackout. What do we do when demand starts outstripping supply on a sustained basis?" Escudero asked.

The trip-off cut the transmission of power from the plant to the region, resulting in a spike in demand from power plants in Cebu, Iloilo, Negros Occidental, and Aklan that eventually caused the whole system to break down.

"Our economic planners forecast growth of about 2.8 percent for 2009 on the premise that last year’s net foreign direct investments will be replicated. But if we can’t ensure a consistent power supply, then investors are unlikely to come here," he said.

Escudero said the Department of Energy needs to accelerate its program to develop alternative energy sources.

Based on the government’s Power Development Plan, total power demand in the Philippines is projected to more than double to 17,722 MW in 2014 from the current 8,559 MW.

The Visayas region will also need an additional 2,283 MW from the current demand of 967 MW.

In 2007, oil was the dominant fuel for providing power in the Philippines, accounting for an estimated 55.9 percent of primary energy demand.

It was followed by coal (23.9 percent), gas (12.4 percent) and hydro electric energy (7.8 percent). /MP

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