THE IMPENDING power supply shortfall that is threatening the development of the Philippine economy is now being seen as one that can also provide local and foreign firms a vast array of opportunities for immense growth.
With the newly drafted “Energy Reform Agenda,” Energy Secretary Jose Rene D. Almendras said the government would be giving power players a much needed assurance to convince them to pour in needed investments that would revitalize the industry.
“Energy Access for More” is the new battlecry of the Department of Energy, as the agenda, Almendras declared, is ultimately aimed at providing sufficient power supply while the government ensures a level playing field for investors.
Under this agenda, the DOE had identified eight key crucial issues such as organizational structure, power supply, downstream oil industry, renewable energy, wholesale electricity spot market, energy resource development, nuclear energy and energy efficiency.
Over the next 20 years, the DOE said it would need P1.83 trillion ($40.6 billion) in fresh investments to revitalize the whole energy sector.
Of the P1.83 trillion in investment requirement, Almendras said the biggest chunk of P902.5 billion would be set aside for the development of the country’s renewable energy sources, while another P543.9 billion had to be earmarked for the development of fossil fuel resources, such as coal and petroleum.
Also needed were investments amounting to P41.37 billion to further develop and boost alternative transport fuels such as biodiesel and bioethanol; P342.54 billion for power transmission and development; and P59.61 billion for the downstream oil sector.
Although no investment target has been set for nuclear power projects, the DOE has sought a P100-million budget to start a nuclear safety standards study in 2011. This is expected to lay the foundation for a possible nuclear power development program in the years ahead.
Discussions about the controversial use of nuclear energy were again revived this year, not so much in terms of commissioning of the mothballed 620-MW Bataan Nuclear Power Plant, but more so with the preparations for a possible foray into nuclear power generation.
For industry players, particularly power generation companies, the assurances made by the DOE and the government seemed to have a positive effect—enough to push them into tapping the numerous available prospects.
Already, publicly listed power giants, including diversifying conglomerate San Miguel Corp., the Aboitiz Power Corp. and the Lopez-led First Gen Corp. and its subsidiaries and affiliates, have already announced plans to add thousands of new megawatts across the three island grids.
San Miguel president Ramon S. Ang earlier told the Inquirer that the company recently started preparations for a $6-billion capital rollout to construct coal and liquefied natural gas (LNG) facilities to generate 3,000 MW in additional capacity.
Aboitiz Power Corp. meanwhile said that over the next five years, it would either put up or acquire more power facilities to generate an additional 1,400 MW.
As for the Lopez group, First Gen Corp. chair Federico R. Lopez earlier said the company and its subsidiaries would spend some $1.5 billion over the next five years to generate more than 1,000 MW in additional capacity.
It now remains to be seen whether the new administration can deliver on its promise to revitalize, as well as overhaul, a conflict-ridden, debt-saddled Philippine energy industry.
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