SEMIRARA ISLAND, Antique—Amid opposition and issues raised by environmental groups against the use of coal to fuel power generating facilities, the Department of Energy admits that removing coal-fired power plants in the generation mix could result in power shortages.

Coal-fired power plants, according to Energy Secretary Angelo Reyes, account for 30 percent and 25 percent of the generation mix in Luzon and for the whole country, respectively.

“We are well aware that the projections for power for the next three to four years are such that we are seeing a critical supply situation, particularly in the Leyte, Cebu, Negros and Panay grid,” said Reyes.

Considering the supply gap in the Visayas, the energy czar said about 23.2 percent of the peak load will be and can be supplied by coal-based power plants.

Reyes pointed out that coal can be considered as a bridge fuel since getting rid of all the coal-fired power plants could result in power shortages.

“You cannot take an option that has no cost, you want to not to use coal now. Thus, we will have to suffer the consequences of power shortages,” he pointed out.

“Until such time that the renewables will come in and kick in and really be available on a commercial basis, we still have to use coal in its cleanest state-of-the-art form—clean- coal technology,” Reyes said.

In November last year, Consunji-led DM Consunji Inc. (DMCI) Power Corp. was in the process of securing contracts with potential offtakers for the 100-megawatt (MW) clean-coal power plant it plans to put up in Panay.

Nestor Dadivas, president and chief executive of DMCI Power, said his company is looking to have the groundbreaking for the project in the next few months.

Dadivas added DMCI Power targets to complete the P7-billion power plant and have it operational by mid-2010.

Dadivas admitted the company is currently negotiating with local and foreign lenders to finance their proposed power plant and that they remain optimistic to get financial closing soon.

He also noted that the company has yet to finalize any partnership with Lopez-controlled First Gen Corp. to jointly build the coal facility in Concepcion, Iloilo.

DOMESTIC manufacturers will be seeking an official scrutiny of the books of accounts of the Manila Electric Co. (Meralco), independent power producers (IPPs) and other power industry players by the Commission on Audit (COA) to determine who among them are really making huge profits and are to be blamed for high power costs.

THE national government estimates that there is at least $3.76 billion worth of projects in the pipeline for funding by the World Bank (WB) from 2008 to 2010 and the Asian Development Bank (ADB) in 2008 and 2009.

THE Philippines has underscored the crucial role that can be played by biotechnology in resolving the food-security problem confronting nations all over the world during the food summit organized by the United Nations Food and Agriculture Organization in Italy.

BELIEVING that the bill seeking the extension of the Comprehensive Agrarian Reform Program (CARP) would not be approved before Congress adjourns sine die on June 13, a militant legislator proposed a compromise that before going on break, Congress should reaffirm the Department of Agrarian Reform’s budget for 2008.

THE board of the Philippine Overseas Employment Administration (POEA) has overturned its previous policy giving full blanket authority to the secretary of labor to approve the renewal of license of manpower agencies sending Filipino labor abroad.

THE Delegation of the European Commission in the Philippines (EC) has urged Philippine exporters to its member-states to register chemical substances contained in their products to be able to qualify for the new rules adopted on June 1.

SEMIRARA ISLAND, Antique—Amid opposition and issues raised by environmental groups against the use of coal to fuel power generating facilities, the Department of Energy admits that removing coal-fired power plants in the generation mix could result in power shortages.