Planning must begin now to meet urgent power needs

THE Department of Energy (DoE) has expressed readiness to support the government’s infrastructure program “Build, Build, Build,” but stakeholders are concerned that the program could impact on the country’s energy supply.

According to the DoE, the country will need 43,765 megawatts of additional power by 2040 to meet the increased power demand as the economy continues to grow, along with the needs of the massive infrastructure program. To achieve this goal, there is need for at least 7,000 additional megawatts of generation capacity over the next five years.

It takes about five years for a new power generation program to finally produce energy. That means that any investment decisions to produce the 7,000 additional megawatt of power that will be needed five years hence must be made now.

With one of the fastest growing economies in the world today, the Philippines needs to double its power generation capacity by 2030. To achieve this, the government must consider replacing or upgrading aging power plants.

Industry sources say about 33 percent of the country’s current capacity comes from power plants that have been operating for 20 years, thus nearing their 25-year lifespan. Some 60 percent of these power plants have been operating for more than 15 years now.

Some left-leaning organizations have also been opposing the approval of Power Supply Agreements pending with the Energy Regulatory Commission (ERC). This has impeded the construction of new plants.

“Build, Build, Build” is bound to stand out as one of the major achievements of the Duterte administration, and in preparation for it, substantial funds have been approved. The President has also ordered the Technical Education and Skills Development Authority (TESDA) to train more skilled construction workers needed by the program.

As the building program progresses in the coming years, there will be an increasing demand for power – for the building and later for the operation of the new infrastructures. Both for energy security and for economic growth, planning for the country’s increased power needs must begin now.