Ensuring dependable power generation capacity has emerged as among the top priorities the Mindanao business community want addressed in the coming years to keep up with the surging demand and prevent supply shortfall.
The consensus was contained in the policy agenda that came up as the Mindanao business sector’s policy recommendations at the recently concluded 20thMindanao Business Conference in Pagadian City.
The policy agenda was presented to Mindanao Development Authority (MinDA) chair Luwalhati Antonino, who represented President Aquino at the largest annual gathering of business and industry leaders in Mindanao.
The business sector has strongly pointed out the need for a concrete energy plan for Mindanao, in light of the increasing demand and the projected energy supply shortfall if power generation capacities are not sufficiently readied.
In its earlier economic report, MinDA has noted that power generation was among the top investments in Mindanao last year, but the expected power generation capacities need to be scaled up to keep pace with the island’s required capacity.
Mindanao’s power generation has been steadily increasing at an average annual growth rate of 4.7% from 2002-2009. But in the second quarter of 2010, the average and peaking capabilities of Mindanao’s main source, hydropower plants, dropped to 771 MW and 860 MW, respectively, resulting to 4-6 hours daily brownouts in certain areas.
The average capability was at its lowest during the height of summer months last year when it dropped by about 90%. The huge dependence of Mindanao to its hydropower sources has rendered it vulnerable to power shortages during dry seasons.
The Department of Energy projected that demand would increase by an average of 4.6% annually, topping 2.2 GWH in 2020 and 3.5 GWH in 2030. To meet and sustain this demand, at least 1,000MW new capacities must be installed in the next 10 years and still another 1,500MW from 2021-2030.
“Given the challenges we face with the current generation capacity, we need to embrace diversification of our power sources but geared towards the use of clean, renewable and indigenous sources of power to minimize costs attendant to importation, foreign exchange risks, and environmental impacts,” the MinDA statements read. [MinDA]
