EDITORIAL – A looming crisis

In the past months, experts have warned that a power crisis looms next year, with Mindanao to be hit hard together with Luzon, including Metro Manila. The latest warning came from an official of the National Grid Corp. of the Philippines, who said that with unstable supply and no new generating capacity expected soon, the country faces a bleak energy situation in 2011.

Last summer, parts of Minda-nao, where hydropower accounts for 74 percent of energy supply, already suffered from daily blackouts that sometimes lasted up to 12 hours.

It takes from three to seven years to build a new power plant. The country can again tap electricity from barges, but operators of such barges want an assurance of sufficient demand that the government cannot guarantee in Mindanao. Even where there is high demand, such as in Metro Manila, electricity generated by barges is expensive. This is a lesson the nation learned when the Ramos administration had to turn to power barges to restore the lights in Luzon ASAP after Metro Manila was crippled by eight-hour daily blackouts in the final months of the first Aquino administration.

Even after that first serious energy crisis, the country failed to implement measures to increase generating capacity to meet rising demand. Initiatives in new energy projects or plans to expand operations became bogged down in scandals and politics.

The result has been felt for many years now: the Philippines has inadequate energy supply and one of the highest power costs in Asia. This situation has been one of the biggest disincentives to foreign investment, but little was done in the past decade to address the problem. It is now up to the second Aquino administration to deal with the neglect, and prevent a return of the Age of Darkness. –(The Philippine Star)