THE DEPARTMENT of Energy is urging power stakeholders in the Visayas and Mindanao to look into other sources of power, such as nuclear energy and natural gas, to ease the power supply shortages on the two islands, a government official said.
Jesus Tamang, director for the DOE?s energy policy and planning bureau, cited as an example the case of Mindanao, which is highly vulnerable to abrupt changes in weather patterns, like the El Niño weather disturbance.
Over half the power that Mindanao generates came from hydro resources, Tamang explained.
?Visayas and Mindanao should also be looking at natural gas as an alternative (source of power). Alternative fuels and technologies would be a welcome thing for them,? he said.
According to Tamang, several power stakeholders in Mindanao have already expressed their ?openness? in putting up a nuclear power plant on the island during a recent consultation forum with the DOE.
The local government of Cebu meanwhile expressed interest in putting up its own liquefied natural gas (LNG) facilities on one of the surrounding islands, he added.
The government is keen on putting up the necessary LNG facilities and pipelines on the islands to help promote the use of natural gas as alternative source of power, Tamang said.
Once the government has put in place the natural gas facilities, Tamang said, they would be open to anyone who could supply the gas.
?We?re also doing our own exploration because we want to be able to tap our own natural gas, like that of the Malampaya deepwater gas-to-power project (off Palawan),? he added.
?It?s a chicken-and-egg case. But I think if the infrastructure is in place, the conversion (of power plants into natural gas facilities) or the purchase and use of gas is going to come naturally.?
He admitted that currently, investors who were willing to invest in natural gas would tend to hesitate in putting up the necessary infrastructure to spur the sector. Other stakeholders are waiting for the infrastructure to be put in place first, before they forge any agreements.
For now, most investors are on a wait-and-see stance with regards to the policy directions of the new administration, Tamang said.
The government has been seeking investors that will pour in at least $5 billion up until 2014 to fully develop the country?s downstream natural gas industry.
Such investments in natural gas are expected to spur projects, which may include greenfield facilities that may generate a total of 3,000 MW, and power plant conversion projects that may generate an additional 600 MW.