NATURAL GAS SEEN AS ALTERNATIVE TO COAL

The Semiconductor and Electronics Industries Foundation, Inc. (Seipi) has cheered its annual business partner, First Gen, for the recent inauguration of its 414-megawatt San Gabriel combined-cycle and 97-MW Avion open cycle natural gas-fired power plants in Santa Rita, Batangas.

First Gen owns the 1,000megawatt Santa Rita and the 500-megawatt San Lorenzo natural gas-fired power plants that are generating electricity that helps lower the bills to consumers of Meralco (Manila Electric Company), another Seipi ABP.

Seipi welcomes the inauguration of the new power plants, which provide much needed additional generating capacity to the Luzon grid.

As noted by Dr. John Morris of the International Energy Consultant in his May 2016 “Regional/Global Comparison of Electricity Tariffs” study, the Philippines should “focus on facilitating investment in new generation to meet rapid demand growth and promote competition”.

Seipi said these new investments would create more competition, not just among power plants, but also among fuels.

Based on the July data from Meralco’s website, natural gas can be a cheaper source of power.

Dan Lachica, Seipi President, says that, “One of the major challenges faced by the electronics industry is the high cost of power, which is the second worst in Asia. The additional 511 MW from these natural gas power plants is a welcome development for our Philippine electronics industry.”

In 2015, the Philippine electronics industry accounted for $28.9 billion, or 49 percent of our country’s merchandise exports.

The industry employs 2.8 million direct and indirect workers.