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.