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PIA Press Release
2010/02/27

Subsidies offered to urge big consumers to de-load

By Mai Gevera

Davao City (27 February) -- The Energy Regulatory Commission approved for the subsidies that would encourage big power consumers like malls and factories to de-load from the grid and generate their own power.

Davao Light and Power Company Art Milan bared that the DLPC is willing to subsidize oil and lubricants needed for big companies to generate own power.

DLPC met with the major power consumers in the city Thursday (Feb 25) and asked for commitment to participate in this particular scheme.

SM Davao Branch Manager Debbie Go said that the mall chain is willing to cooperate especially that SM Cebu Branch had already been an active participant in this strategy implemented in Cebu.

"We are also bent to do the same rather than suffer from not having power at all," she said.

The mall management expects a clear de-loading schedule coming from the DLPC once the entire scheme starts operation.

Big power consumers have already been briefed on the exact power situation in Mindanao held during the Mindanao Power Stakeholders Forum last February 18.

National Grid Corporation of the Philippines Regional Corporate Executive Ed Calabio said in a stakeholders meeting yesterday with Presidential Adviser for Mindanao Affairs Jesus Dureza that Mindanao has now reached the critical level.

"We must have a at least 230 MW of reserve above the load so we could have voltage regulation. But right now, we no longer have any reserve," he said.

This has been the reason why NGCP was forced to curtail power transmitted to power utilities. The curtailment was aimed to ensure and protect the entire Mindanao Grid.

Due to El Nino phenomenon, hydropower source reduced production from last year's 53 percent share in the whole power generation in Mindanao to a mere 34 percent this year.

"When there is no water, then we are 50 percent off our capability," said Calabio.

This pushed the power sector to tap oil sources of power besides hydro that includes oil and coal.

Some of the projects pushed to augment power shortage are those of Conal Holdings' Maasin, Sarangano 2x100MW clean power plant which will be completed by 2013 and the Zamboanga 100MW coal-fired power plant to be completed by 4th quarter of 2014.

The Mindanao Coal Fired Thermal power plant 210 is set to run in full load, defer preventive maintenance schedule of unit to June 10 from the original schedule of February, and ensure adequate coal supply. (PIA XI) [top]

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