In the Philippines: Power shortage

Blackouts of up to 12 hours a day
Alastair McIndoe, Straits Times 13 Mar 10;

MANILA: In a covered area on the enormous Payatas garbage dump, mother-of-four Jane Tolentino plugs her electric iron into a row of power points and spreads a T-shirt onto a rusting ironing board.

Above her hangs a sign: 'Powered by methane'. The gas is extracted from rotting garbage and converted into electricity that powers the dumpsite's operations - and an ironing centre for ragpickers.

'We won't be getting brownouts,' says Ms Tolentino, as passing trash-filled trucks churn up clouds of dust.

Drops in the supply of electricity known as brownouts are spreading across the Philippines. A heatwave linked to the El Nino weather pattern has caused water levels in hydroelectric dams - which supply around a third of the nation's electricity - to fall to critical levels.

Repair work on several key power plants has worsened the situation.

Power cuts of up to 12 hours a day have hit parts of the main southern island of Mindanao, which is heavily dependent on hydroelectricity. Peak demand on the island with its population of 20 million is 1,450MW. But its power grid is supplying less than half that amount.

Unless it rains in the coming fortnight, the huge Magat Dam in the parched northern Philippines will be forced to shut down until the water level rises.

Last week, parts of metropolitan Manila were hit by two-hour rotating power cuts caused by breakdowns at three coal-fired plants. The electricity distributor Meralco has warned of further cuts.

'Businessmen are very apprehensive,' Philippine Chamber of Commerce and Industry president Francis Chua told reporters.

While new power plants are under construction, concerned groups say these will not be sufficient to meet future demand. Energy officials estimate the country's power needs will double to around 16,500MW over the next 20 years.

'The larger picture is worrisome,' said Mr Alberto Lim, executive director of the Makati Business Club, which represents big business in the Philippines.

'It takes between three and five years to put up a new power plant so we have to start attracting investments in this sector soon, but the climate is not inviting.'

He was referring to investor concerns on governance and corruption.

The Philippine Star daily said in a recent editorial: 'The El Nino weather phenomenon is merely an aggravating factor.'

Right now, the energy authorities are grappling with their most severe power shortage since the early 1990s, when blackouts lasting 12 hours a day hit the capital.

That was fixed when former president Fidel Ramos used emergency powers to contract private companies to provide electricity from diesel-run portable generators called power barges. It was an expensive solution, however.

The government is looking at this option again for Mindanao.

But plans to hold a special session of Congress to vote on giving President Gloria Arroyo emergency powers to tackle the power problem were dropped on doubts that a quorum could be reached.

This is election season and many lawmakers are out campaigning in their provinces for re-election in the May 10 polls.

'We will do everything we can to prevent power-related concerns getting in the way of an... orderly election,' Energy Secretary Angelo Reyes told reporters.

Mr Lim said local and foreign companies are looking to the next administration to improve the business climate to spur much-needed energy investments.