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Mindanao faces power shortage in 2012

PSALM urged to rush sale of diesel-fired barges

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Residents affected by the devastating flash flood and using an improvised torch prepare to sleep at their temporary shelter along a road at a village in Cagayan de Oro City, Mindanao, on December 23, 2011. The number of people missing after devastating Philippines floods soared to more than 1,000 December 23. The state-run Power Sector Assets and Liabilities Management Corp. has been urged to rush the sale of government-owned diesel-fired power barges as a measure to avert a power supply shortfall in Mindanao this year. AFP/TED ALJIBE

Energy Secretary Jose Rene D. Almendras has urged the state-run Power Sector Assets and Liabilities Management Corp. (PSALM) to rush the sale of government-owned diesel-fired power barges as these might be necessary to avert a power supply shortfall in Mindanao this year.

Almendras said that while the power supply situation in Luzon and Visayas was expected to be stable this year, Mindanao might suffer supply shortages of about 100 megawatts to meet peak demand alone.

More capacity is needed to have in place the ideal power reserve levels that could avert rotating brownouts in Mindanao in case any of the facilities on the island bogs down, he said.

Almendras said the Department of Energy was asking PSALM to rush the sale of the power barges, specifically PB 101, 102, 103 and 104, so that these could be repaired and moved to Mindanao.

“We are [also] facilitating the transfer of privately owned power barges to be moved to Mindanao,” Almendras said.

PSALM earlier announced that it was targeting to hold the bidding for the sale of PB 101, 102, 103 and 104 by March this year. Once sold, the winning bidder is mandated under the terms of contract not only to repair the diesel-fired barges but to also move and station these facilities in Mindanao for at least three years.

Commissioned in 1981, PB 101 and PB 102 are moored in Barrio Obrero, Iloilo City, while PB 103 and 104, which were commissioned in 1985, are in Botongon, Estancia, Iloilo, and at the Holcim Compound, Ilang, Davao City, respectively.

Since they began operations, these barges have been moved to various regions needing power support.

However, the bidding for the four power barges could be postponed because of a pending house resolution filed by Representative Rufus Rodriguez.

Through the bill, the legislator is urging PSALM “not to bid out the remaining four power barges and instead make them available to provide power in Mindanao.”

The lawmaker earlier sought a congressional probe on PSALM to determine why the agency had to sell the barges to the detriment of Mindanao power consumers.

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Tags: Energy , Government , Mindanao , Philippines – Regions , power shortage

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  • http://pulse.yahoo.com/_J4XVIVXCFZIHI6MWJJYPX5FXOA Pedring

    The problem with the DOE is that it can find solution only in selling government-owned power plants! Is privatizing these plants the only solution? Can’t the brilliant minds of the DOE think of any other viable alternative? When these barges are privatized and brought to Mindanao, they bring with them the prohibitive costs of electricity. Truth is, the only reason why these barges will be brought to Mindanao is to raise the generation charge for the Mindanao grid which is currently the cheapest at 2.98/kwh. Now compare this to the generation cost of electricity coming from power barges which is estimated at P8.00/kwh! Mr. Secretary, are you really sure that there is shortage in Mindanao or that is only the idea peddled to you by your friends/bosses in the power industry? Doing so will raise the cost of electricity in the Mindanao grid and thereby fattening the pockets of the already-filled bank accounts of the power industry players in the region. This is the reason why teh country’s old elite who are not traditionally engaged in power generation are joining the band wagon. Sa power industry, sigurado ang profit. Walang lugi. Ang na-disadvantage lang ay ang taong bayan! Imagine, all expenses are passed-on to the consumers. Lahat! Peste! 

    Secondly, it is high time that the government should take an active part in teh determination of which capacity will be dispatched or how much electricity should be generated at any given time. At present, this is determined by the Systems Operation group of NGCP, a private company! And why should a private company dictate on what power to generate and from whom? 

  • http://pulse.yahoo.com/_PPUPSBWP2WEBCCPGHRY54UCTOM Anne Torre

    Since the time of Cory, electricity was never sufficient in Mindanao until now. Stupidity in the Energy Department add salt to the injury. Why rely on power barges when they can only serve the coastal towns? There are lots of rivers that can accommodate dams to fill the power shortage long saddling Mindanao. Can’t the Energy Department assess and evaluate the power supply efficiency and sufficiency? So lazy these corrupt officials who are just keen on what they can get from their positions. And too many offices handling the power matters wasting taxpayers’ money. 

    Abolish these electric cooperatives which are cooperatives in name only. My friends were never issued certificate of shares so where is the cooperative then. Mindanao has the highest electric power rates by these electric cooperatives and yet they are the most inefficient and daily brown-outs are normal.

    I remember attending a town fiesta where the evening had an all-night brown-out. The people had to request the town mayor to use the town hall emergency generator. And then there the shameless electric cooperatives directors attending the evening celebration smiling to their ears.  

  • http://joboni96.myopenid.com/ joboni96

    “make them available to provide power in Mindanao.”

    cong rodriguez has the better solution
    wala nga lang kikita sa transaksyon
    another test for the tuwid na daan

    sustainable pro-people hydropower
    may be the key
    makikinabang din ang mga tatamaang tao

  • Anonymous

    The secretary of DOE is rushing PSALM to sell the government-owned diesel-fired power. 
    Magaling!
    Privatization nanaman sa basic services ng kawawang pilipino!
    Magaling!
    Paki sabi narin kung magkano ang kick-back sa bentahan!  



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