DEVELOPMENTAL POWER

by Atty. IMMANUEL L. SODUSTA

(This will be the first of the op-ed type columns that the author will be writing. While the main topic is the power situation, it will not be confined to it as it would also delve on other developments happening in the Province of Aklan. For comments, email to immanuelsodusta@gmail.com)

POWER OUTLOOK OF AKLAN

With the mandate of Republic Act No. 9136, the Electric Power Industry Reform Act (EPIRA) that the government owned National Power Corporation (NPC) be privatized, will Aklan suffer brown outs due to scarcity of power?

Many doomsday seers predict that we are on the verge of the dark ages and soon our Province will be plunged into darkness. This is not the situation, however.

Give or take, our power load is about 25 megawatts every day. Around 80 percent of this power that we need comes from the (NPC), the rest comes from our very own Independent Power Provider (IPP), the two plants that we have in New Washington and Nabas. The price of power that comes from NPC is very cheap as the same is being subsidized by the government. The power that comes from the IPP is higher as it is based on the actual cost of generation.

It is understandable that the government would want to sell the generating plants owned by the NPC as it may no longer like to subsidize the cost of power. This is the wisdom that came from our congressmen – which they translated into policy – law – EPIRA. Anyway, that is the situation. What will happen to us now?
The bulk of the power that NPC sends to Aklan comes from a geothermal plant in northern Negros. Some comes from other diesel plants that the NPC may still be operating or subsidizing. This geo-thermal plant, which is considered renewable energy source, was also sold by the NPC to a company owned by First Gen.

The Transmission Supply Contract (TSC) that we have with NPC ends this year. It means that NPC will no longer be obligated to supply us with power as they used to. In fact it has informed AKELCO to look for other sources of power and indorsed it to First Gen, the buyer of the geothermal power plant, because the TSC contract of AKELCO is attached to the said plant.

The good news is that First Gen, even before it has purchased the geothermal plant, already came to AKELCO to negotiate regarding the supply of electricity in the event that it will be successful in its bid to buy the plant. That is how confident First Gen was. First Gen and AKELCO are now in talks as to the purchase of their power. Despite the sale by NPC then, the power being generated by the plant remains and the same power will be sold to AKELCO albeit by another owner. Aklan’s power source is one of the "greenest" as about 80 percent of it comes from a geothermal plant.

While the continuity of power supply is a welcome news, the next concern is the dependability. The power coming from Negros will have to pass through the transmission lines from the geothermal location then to the submarine cable from Negros to Panay and then through some more transmission lines up to Aklan. Any fault or defect along the way, either man made or of natural calamity will surely affect our power situation. The only solution to this predicament is to source our power within the Island of Panay or even better, within the Province.

Many development projects or power projects are now being undertaken or at least planned in the Island of Panay and even our Province. A coal plant is being constructed in Iloilo City. The owner of this plant is also in talks with AKELCO for the purchase of its power once it starts its operations. A bio mass company wants to put up a power plant in our Province to also supply us with power.

AKELCO has contracted with this company but it has not yet started its ground breaking. At least three (3) hydro power companies are interested in constructing dams and other hydro projects in Libacao and Madalag to generate power. These are ongoing or planned projects. However, that will need a considerable time before we can avail of their production. Of the foregoing, the coal plant in Iloilo holds more promise as its construction is now in full swing and it is scheduled to be operational by late 2010.

In the meantime then, do we have enough power? The answer is yes. Aside from the IPP that we have, the power coming from NPC, there is yet another source that we may avail of. Until next. /MP