Mindanao’s economic and social development will be stalled if this situation is not improved. Families, businesses and industries in the region need additional sources of power that are reliable, affordable, and more importantly, not weather dependent," said AboitizPower first vice president for Mindanao Affairs Bobby Orig.


To meet the power shortage problem in Mindanao before it becomes even worse, AboitizPower is proposing the construction of a 300-megawatt (MW) circulating fluidized bed (CFB) coal-fired power plant in southern Davao.


Power situation


Projections and estimates by government and private sector agencies estimate that by 2012, there will be a power shortage of 270 MW in Mindanao.


Unless additional energy sources are tapped soon, as much as 484 MW will be lacking in the supply over the next three years.


"Government and independent think tank estimate project that the power shortage by year 2014 will be 484 MW. That means there is a need to build more power plants in the next few years. 484 MW is enough to cut power entirely to the cities of Davao, GenSan, Butuan, CDO and Zamboanga," said Orig.


Through its wholly owned subsidiary Hedcor, Inc., Aboitiz Power is already constructing seven new hydropower plants with combined output of 68 MW — still short of the total power needed in the region.


There are limits to the number of hydropower plants and the amounts of power these may generate in Mindanao.


According to Orig the limit was due to geographic and geological realities.


"There are no more large bodies of water in Mindanao that can produce a large amount of power similar to Agus-Pulangi," he says. He points out that if Mindanao is to meet its power needs, there would have to be additional power plants that are not hydropower based.


A balanced mix portfolio


Mindanao needs a variety of energy sources in order to minimize the impact of the power shortage. This involves creating a right mix of energy sources in the region. "The right mix of energy sources ensure that Mindanao will continue to reap its natural resources as a source for power while utilizing non-renewabe sources to secure its continued growth," said Orig.


Aboitiz Power is proposing a coal fired power plant in Davao to begin creating this right mix of energy sources. Orig noted that even with the new Davao coal plant’s 300 MW generating capacity, it is still not enough to meet the 484 MW shortage projected in Mindanao by year 2014.


"That means there is still a need to build more power plants in the next few years," he says. Safe and affordable


Orig said that the modern technology used in the proposed coal fired power plant in Davao ensures that it’s safe for the environment and the surrounding communities.


"CFB coal-fired power plants use modern technology and processes to reduce emissions of nitrogen oxide and sulfur oxide. This ensures that emissions are at a bare minimum and will pass Philippine and international standards. By using high-quality coal from Indonesia, we also burn coal at an efficient rate, further reducing emissions," he said.


Electricity generated by coal-fired power plants is also more affordable to consumers.


"As mentioned earlier, there are no more large bodies of water in Mindanao besides the Agus-Pulangi that can produce a large amount of hydropower.


Other renewable energy sources are also too expensive to develop and to sell to consumers. These other renewable sources also cannot be utilized most of the time. Mindanao needs an energy source with a large power capacity that is reliable, affordable and will cause the least adverse effect to the environment. Only coal will meet these three requirements," said Orig.


He said that Aboitiz Power develops coal power in conjunction with its thrust to further develop hydropower in Mindanao, as part of its advocacy of using clean, safe renewable energy.


The coal-fired power plant is meant to supplement and support hydropower, especially in dry months when water levels are not enough to generate electricity.


"By utilizing CFB and through our engagement with various stakeholders in Mindanao we ensure that the coal plant will meet stringent health, environment and safety standards. This is part of our thrust to attain the right mix of energy sources--ensure that the growth of Mindanao is unhampered while utilizing renewable energy to the maximum," he said.


Aboitiz Power is the holding company for the Aboitiz Group’s investments in power generation, distribution, retail and power services.


It is a major producer of Cleanergy, its brand for clean and renewable energy in the Philippines with several hydroelectric and geothermal assets in its generation portfolio and also has non-renewable power plants located across the country. The company owns distribution utilities that operate in high-growth areas in Luzon, Visayas and Mindanao. 

(PNA)
RMA/ASF/utb




 
Source: Philippine News Agency

AboitizPower coal plant in Davao to help ease power shortage in Mindanao‏