DoE chief warns of power shortage if opposition to coal power succeeds

MANILA, Philippines—Energy Secretary Jose Rene D. Almendras warned on Thursday of a possible 600-megawatt shortage in power reserves by 2014 and 2015, as protests lodged against the proposed coal-fired power projects threaten to delay their construction.

Almendras sounded off the alarm at the sidelines of a briefing at the Philippine Stock Exchange on Thursday, as he described the baseload coal-fired power projects—which have been hounded by objections from various concerned groups—as critical to ensuring a brownout-free Luzon and Visayas during those years.

The power situation for 2012 also looks grim with the government expecting a power reserve shortage of as much as 300 MW, as a worst-case scenario. Should another El Niño episode occur, a breakdown in any single existing power facility will already cause brownouts that could last for several hours.

To avert rotating brownouts in 2014 and 2015, an investor must start building by early 2012 a facility that could generate at least 600 MW, Almendras added.

The energy chief admitted that the 600-MW coal-fired power plant in Subic that was proposed by a consortium composed of power distributor Manila Electric Co., Aboitiz Power Corp. and Taiwan Cogeneration Corp., could help avert a looming power crisis in 2014.

However, Subic residents, local officials and members of non-government organizations are protesting this facility, citing as reasons the adverse environmental impact of the project on surrounding communities in Olongapo and Zambales and the lack of proper consultation for their opposition.

Other expansion projects are likewise facing certain problems, according to Almendras, citing the case of US-based power giant AES Corp. He, however, does not elaborate what kind of problems AES is facing.

In 2010, AES announced plans to double the capacity of the 660-MW Masinloc coal power plant in Zambales at an estimated cost of $800 million. Based on initial plans, AES should have started construction this year, enabling it to finish construction by 2014. But the government remained optimistic that the AES would be able to complete the planned expansion by 2015, Almendras said.

Almendras further made another subtle warning as he said that the government would exercise the necessary powers to ensure that projects, deemed critical to the country’s social and economic growth, push through.

“If national interest is not protected, then the President will exercise his powers. But we’re hoping that we will not get there,” Almendras said.