Is coal really the answer? (First of Two Parts)

By Henrylito D. Tacio
Last January 8, the Aboitiz Power Corporation inaugurated its 300-megawatt (MW) baseload power plant in Davao City. It is “seen by many as an important long-term solution to the Mindanao power supply problem.”
“Over the past couple of decades Mindanao has suffered several power crises primarily brought about by droughts that, because of its over dependence on hydropower, resulted in a shortfall of power with outages extending up to 8 hours a day during the summer months,” observed Erramon I. Aboitiz, the chief executive officer of Aboitiz Power, in his speech.
“With the region’s economic growth over the years, the island’s need for additional capacity fell short because it was not feasible for private capital to put up the required capacity,” he said, adding that it cannot compete with the low selling price of the National Power Corporation.
“As a result power reserves in Mindanao dwindled away, hence the power crisis recurring more often as time went by,” Aboitiz pointed out.
In a press statement, Aboitiz said the power plant currently supplies baseload power to more than 20 electric cooperatives and distribution utilities in Mindanao. Among these are Agusan del Sur Cooperative, Bukidnon Second Electric Cooperative, Cotabato Electric Cooperative, Davao del Sur Electric Cooperative, Davao Oriental Electric Cooperative, Davao del Norte Electric Cooperative, Misamis Occidental I Electric Cooperative, South Cotabato I Electric Cooperative, South Cotabato II Electric Cooperative.
It also supplies baseload power to Surigao del Norte Electric Cooperative, Surigao del Sur I Electric Cooperative, Surigao del Sur II Electric Cooperative, Sultan Kudarat Electric Cooperative, Zamboanga del Norte Electric Cooperative, Zamboanga del Sur I Electric Cooperative and Zamboanga del Sur II Electric Cooperative.
The following distribution utilities also get some of its baseload power from the Davao plant: Davao Light and Power Company, Cotabato Light and Power Company, and Cagayan Electric Power and Light Company.
The baseload power plant is located in barangay Binugao in Toril and barangay Sirawan in Sta. Cruz, Davao del Sur. The first unit reportedly started commercial operations in September last year while the second unit is undergoing reliability tests and will be in full commercial operations next month.
The construction of the P35-billion Davao baseload power plant started in 2012. During its peak, the construction employed around 4,500 people, a good number coming from the local community.
Aboitiz Power uses a modern technology in transforming coal into power. “The power plant uses the latest circulating fluidized bed combustion technology that minimizes emissions and ensures that the power plant meets Philippine Clean Air Act standards,” it said in a statement. “It houses the country’s first coal dome, which provides a safe and efficient way to store coal fuel.”
In addition, the power plant also uses an electrostatic precipitator, which electrically charges and removes more than 99 percent of dust and other particles from the effluents. A Continuous Emission Monitoring System, connected to the Environmental Management Bureau of the Department of Environment and Natural Resources, monitors power plant emissions in real time to ensure compliance.
Not only that. A multi-partite monitoring team, composed of non-governmental organizations, government agencies and regulators, have been in place since the power plant’s construction stage to ensure that Environmental Compliance Certificate (ECC) conditions are followed and met.
Relative to this, the company has established a carbon sink management program in upland Marilog district in partnership with the Matigsalug Indigenous People’s community. “Indigenous farmers help Aboitiz Power in expanding and maintaining a forest ecosystem area that will absorb a significant amount of carbon emitted by the power plant,” it said in a statement.
A day after the inauguration, Malacañang said that coal-fired plants are necessary to prevent power outages in the country. Kristine Angeli Sabillo, in an article published in Philippine Daily Inquirer, quoted Undersecretary Manuel “Manolo” Quezon III of the Presidential Communications Operations office telling state-run Radyo ng Bayan that the president already explained the need for coal-fired plants.
A few years back, President Benigno Aquino III, who personally came to attend the inauguration, told the local press that the most viable source of electricity for Mindanao is still coal. When asked on how his administration would address environmental groups’ resistance to government efforts to attract more investment for power generation in Mindanao, the president reply was: “If Mindanao needs it (power) now, coal is one of the most accessible at this point in time.”
In the Inquirer feature, Quezon was quoted as saying, “We need power plants that generate electricity – rain or shine, day-in or day-out – during peak capacity. Because of limitations in technology, base load cannot be provided by renewable sources of energy like wind and hydropower.”
Meanwhile, Aboitiz said the Davao power plant will be a reliable complement to Mindanao’s existing hydro power sources. He said renewable energy will and should continue to contribute a significant portion of the power supply, which is in line with Aboitiz Power’s long-term strategy to provide a balanced mix of energy sources.
Marilou Guieb, in an article published in Business Mirror, reported that coal burning “has existed for centuries, powering the Industrial Revolution and now providing 29.9 percent of the world’s energy needs and generates 41 percent of global electricity.” Today, the world’s five largest coal users account for 76% of global coal uses; these are China, the United States, India, Russia and Japan.
According to government records, the country has a vast potential for coal reserves waiting to be explored. “As of 2005, in-situ coal reserves of the country was 458 million metric tons, or 18 percent of the country’s total coal reserve potential of 2.53 billion metric tons,” Guieb wrote. (To be concluded)