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By Euan Paulo C. Añonuevo, Reporter
A POWER crisis remains imminent for the
Philippines in the next three years given the government’s failure
to jump-start an open-access regime, according to a report by the
Department of Energy.
In its 11th status report on the implementation
of the Electric Power Industry Reform Act of 2001 (Epira), the
agency said the construction of new power plants deemed crucial in
averting the energy crunch hinges on the onset of the open-access
regime, as prospective investors refuse to build facilities without
guaranteed markets’ courtesy of supply contracts with distributors
and large power users.
Based on the Supplemental Power Development Plan
2006-2014 released in the last quarter of 2007, power supply will
become critical for the Luzon grid in 2010, the Visayas grid in
2011, and the Mindanao grid by next year.
Implementation of open access, in which
consumers choose their supplier, is hampered by the government’s
failure to meet two conditions under Epira, namely the sale of at
least 70 percent of state-owned National Power Corp.’s (Napocor)
total generating and contracted capacity in the Luzon and Visayas
grids.
State-run Power Sector Assets and Liabilities
Management Corp. (Psalm), which is tasked with privatizing these
assets, has so far sold only 42.8 percent of Napocor’s capacity,
equivalent to 11 power plants with a combined capacity of about
1,900 megawatts.
The auction of the contracts of Napocor’s
independent power producers (IPPs) meanwhile is scheduled for
August.
Govt defers energy spot market in Visayas
grid
The report’s release also occasioned the
department’s announcement of a deferment in the launch of the
wholesale electricity spot market (WESM) in the Visayas grid due to
tight supply conditions.
Open access is also premised on the operation of
the WESM, where suppliers and buyers trade openly to bring down
prices. WESM has been operational in the Luzon grid since 2006.
“International experience has taught us that
competitive markets should not begin its commercial operation in a
tight reserve situation as this will give rise to a situation where
all existing generators will end up with market power. Such
conditions would be very difficult to administer successfully and
may discredit the benefits of WESM,” Energy Sec. Angelo Reyes said
in a statement.
The power crisis is expected to be felt first in
the Mindanao grid, as a number of large scale mining and shipping
projects are set to kick off next year, further putting a strain on
the island’s limited power supply.
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