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11 September 2009 in Business World Online

Davao City council drafting energy conservation code

The local legislative council is drafting an ordinance that will compel government offices and the private sector to implement energy conservation measures to better prepare the city for a looming power crisis.

The proposed measure, dubbed the Davao City Energy Code of 2009, hopes to promote energy conservation as a way of life, as well as cushion the impact of rising energy costs. It aims to cut spending on fuel and electricity and protect the environment without compromising productivity.

Councilor Pilar C. Braga, chairperson of the committee on energy and transportation, said current construction activities and expansion projects are fast widening the gap between demand and supply and might trigger a power shortage in the city by 2012.

"The entry of new investments in Davao will increase the load beyond 270 megawatts in the year 2012," she said, setting the target for the passage of the ordinance "within the year."

Among the salient points of the ordinance are the labeling of machines and appliances with estimated average power consumption information, the promotion of energy-saving machines and appliances, pilot-testing a green building project, a "trade-in" scheme to encourage households to replace old and inefficient light bulbs, and providing fiscal and non-fiscal incentives for buildings that are retrofitting and new buildings that are built as energy efficient.

Ms. Braga said the city is not experiencing a power crisis yet with the actual demand of 248 megawatts (MW) against the 269.845-megawatt allocation by the Aboitiz-owned Davao Light and Power Co. Last year, Davao Light sold 1.371 billion kilowatt-hours to 257,000 customers with a systems loss of 8.17%, or below the mandated ceiling of 9.50%.

In the general assembly meeting of the Davao City Chamber of Commerce and Industry last month, Energy Undersecretary Zamzamin L. Ampatuan sounded off the warning about the power crisis, which will affect Mindanao much earlier than expected. "We re not that aware because we do not yet feel its effects," said Mr. Ampatuan.

In November, the Mindanao Business Council will hold a summit in a bid to find solutions to the looming power crisis.

Jason C. Magnaye, executive director of the council, claimed that the 13.1% power reserve of Mindanao during off-peak hours has already dropped to 1%. The reserve is necessary to ensure continuous supply of power especially when power plants experience trouble.

Davao City is especially critical, being a magnet for big-ticket investments that are also power-hungry, he said.

Northern Mindanao generates 80% of the power supply of the entire Mindanao. Davao Region consumes 51% of that supply and the remaining 49% is distributed to the rest of the regions on the island.

Based on Davao Light’s estimates, Mindanao’s dependable generation capacity as of last year stood at 1,510 MW — which is expected to remain at that level until 2014 since no new projects are still on stream.

Mindanao has four power projects in the pipeline: the 8-MW hydro plant by Cagayan de Oro Electric Power and Light Co.; the 15-MW hydro plant in Bulanog Batang, Bukidnon; 200-MW coal plant in Cotabato by the Alcantara Group; and the expansion of 200-MW STEAG coal plant in Misamis Oriental.

The Philippine Energy Plan lists seven power projects in various stages of development in Mindanao, including: the Minergy Diesel Power Plant in Cagayan de Oro, Global Green Power PLC Corp.’s biomass plants in Northern and Southern Mindanao, Hedcor Tamugan Inc.’s hydropower plant in Davao, Tagoloan hydropower plant, and Agus 3 hydropower plant.

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Green Power Bukidnon Philippines Inc.

Green Power Bukidnon Philippines Inc.

Green Power Bukidnon Philippines Inc.

Green Power Bukidnon Philippines Inc.

Green Power Bukidnon Philippines Inc.

Green Power Bukidnon Philippines Inc.

Green Power Bukidnon Philippines Inc.

Green Power Bukidnon Philippines Inc.
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