Environmental groups: Mindanao outages induced to justify new coal plant deals

The recent spate of power outages in Mindanao was artificially induced to justify the construction of more coal-fired power plants and other controversy-ridden projects in the region, environmental groups based in Mindanao said yesterday.

They described the recent blackouts in Mindanao as “deliberate acts” and are “part of a ploy of power distributors and the Aquino administration to justify the construction of more coal-fired power plants and other extractive energy projects such as Pulangi V Mega Dam.”

Independent web site Bulatlat.com quoted Jean Lindo, No to Coal–Davao convenor and member of the newly formed Kalikasan Party, as saying that the brownouts in Mindanao are not real indicators of a power crisis.

The Aquino administration had lined up the construction of coal plants in Isabela, Batangas, Manila, Quezon, Zambales, Davao del Sur, Sarangani and South Cotabato provinces. Last year saw the inauguration of similar power plants in Cebu and Iloilo.

The government has granted tax holidays to companies investing in coal plants, such as Japanese corporation TeaM Energy in Pagbilao, Quezon, Petron in Limay, Bataan and Therma South Inc. of Aboitiz in Davao City.

“Power distributors can deliberately cause power black outs to happen by manipulating the power supply. This is not new. Every time these firms and investors want to build more coal-fired plants and dams, they mess around with the power supply and cry out that there’s a power crisis or an shortage in supply. This is all artificial,” Lindo was quoted as saying.

Lindo called for an independent energy audit in the region to verify the statement of Energy Secretary Jose Almendras that Mindanao needed 500 megawatts (MW) of non-hydro power resources.

Various legislators and local government officials including Bayan Muna Rep. Teddy Casiño and two Representatives of Gabriela Women’s Party Luz Ilagan and Emmi De Jesus shared the view that Congress should look deeper into the real causes of Mindanao brownouts before even considering giving President Aquino emergency powers to address the supposed supply shortage. Casiño said that “old, worn out solutions won’t do to solve the Mindanao power crisis.”

“Aquino’s proposed emergency powers are aimed at allowing him to enter into new contracts with the independent power producers (IPPs) without going through public bidding and the usual procurement processes. This is basically a rehash of the Ramos-era solution to the power crisis, which is to pass the ball to the private sector via onerous, oppressive, sweetheart contracts,” Casino said.

Casiño said that instead of giving Aquino emergency powers, the government should impose a temporary takeover of two power barges owned by Therma Marine Inc. which recently entered into an ancilliary power contract with the National Grid Corporation of the Philippines (NGCP), resulting in the dramatic escalation of prices of generated power.

He added the government should ensure that the two barges sell power at cheaper baseload prices instead of high ancilliary rates so that electric cooperatives can buy power at cheaper rates and thus, properly service their members without fear of going bankrupt.

Based on Article 12, section 17 of the Constitution, In times of national emergency, when the public interest so requires, the State may, during the emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation of any privately-owned public utility or business affected with public interest, Casiño said.

He said that while the takeover of facilities would immediately address the artificial shortage, government should also take steps to increase actual supply for the Mindanao power grid.

Ilagan for her part agreed with Lindo’s assessment that the Mindanao power crisis is an orchestrated, artificial crisis to push for the privatization of power plants and the fast-paced construction of coal fired power plants in Mindanao.

“Mindanaoans’ power needs are being held hostage in this bid to privatize and further implement the failed Electric Power Industry Reform Act (Epira),” he said.

The Gabriela solon believes that an overhaul of the Aquino government’s energy policy is necessary and called for a probe into the so-called “power crisis in Mindanao” and a repeal of the EPIRA.

Senators Aquilino Pimentel Jr. and Francis Escudero, Sec. Luwalhati Antonino of the Mindanao Development Authority (MDA), and North Cotabato Governor Lala Talinio-Mendoza have all called for an independent and impartial investigations on the power shortages.

The MDA had accused the National Grid Corporation of the Philippines (NGCP) which runs the country’s power transmission grid of creating an artificial power shortage to encourage the privatization of the Agus-Pulangi hydropower plants.

Local electric cooperatives such as the Association of Mindanao Rural Electric Cooperatives (AMRECO) and Davao Del Sur Electric Cooperative (DASURECO) have also decried the made-up power crisis.

Lindo said there are other crucial reasons to oppose the establishment of coal-fired power plants.

“Aside from the environmental destruction and the health risks wrought by coal plants, coal fired power plants’ main clients are foreign mining corporations, which are voracious consumers of energy. Foreign mines in Mindanao take up a lot of our energy supply, ” he said.

Lindo said the energy industry in Mindanao has fallen into the hands of the corporate oligarchy, among these is Aboitiz Power Corporation, which is one of the three major investors in power generation and distribution all over the country.

“A few companies have absolute control over power rates and can pump up power rates without warrant,” said Lindo.

Francis Morales, secretary-general of Panalipdan Southern Mindanao said the president should be more aware of the impact of coal-fired plants.

“Aquino has to end his abominable ignorance on the economic and environmental effects of coal plants, and mega dams. Coal plants and mega dams are deadly solutions. We have to go for sustainable energy sources,” he said.

“While the Aboitiz company has argued the towering costs of maintaining hydropower plants due to its vulnerability to ‘weather conditions,’ hydropower plants have fallen into a state of disrepair due to premeditated government neglect,” he added.

Bayan Muna’s Casiño also said that in the short to medium term, the government should cancel plans to privatize the Agus river hydroelectric plants and instead rehabilitate and expand them to increase the supply of cheap, clean and renewable energy in Mindanao.

“And if we are talking about quickly addressing anymore supply gaps, what can be done within the next six to nine months is deploy solar power systems that can beef up power during peak demand periods, which is the same time that solar energy is at its peak,” he said.

Presidential Communications Operation Office (PCOO) Secretary Herminio Coloma had urged all stakeholders from government and private sectors to share the burden of ensuring reliable power supply at affordable rates amid power crisis in Mindanao.

”We should continue consultation with all the stakeholders specially with our legislators,” Coloma said during the weekly Communication and News Exchange (CNEX) forum.

”There must be a sharing of burden and sacrifices. We have to unite and cooperate with the help of private and government sectors and industries to discuss the best sharing of burden to solve the problem,” he said.

Coloma said the power shortage in Mindanao could have been avoided if not of the decision of the Mindanao lawmakers to exclude the region in the EPIRA Law which was approved in 2001.

”The lawmakers in Mindanao have asked for 10-year moratorium on the privatization of Napocor plant. So they are not covered. We’re not able to correct reforms which we implemented in Luzon and Visayas. That’s the reality we have to face,” he said.

Coloma said the passage of EPIRA law in 2001 was very important due to debt-ridden National Power Corporation (Napocor).

”What the law did was we shifted from government managed electricity industry to a market driven competitive environment. That was a crucial change,” Coloma said.

”The EPIRA has brought significant change in our country specially in Luzon and Visayas because investment started to come in and brought new power generation facilities at the affordable prices,” he added.

Coloma said the Agus Plant, the oldest hydropower plant commissioned in 1953, needs to be replaced even as he revealed that climate change has affected the hydropower plants in Mindanao.

”The lifespan of the Agus Plant was only 30 years. So it should have been upgraded in early 80s. There is power shortage because the main source of power in Mindanao is hydro electricity and because of climate change, water is no longer abundant,” he said.

Energy undersecretary Loreta Ayson appealed to every Filipino specially government offices to conserve energy amid the power shortage in Mindanao.

”Every Filipino can help address the problem by joining our energy conservation program specially the government offices which are required to reduce their electricity consumption by 10 percent,” Ayson, who also graced the CNEX forum, said.

The Mindanao grid that needs an average of 1,300 megawatt, reportedly lacks an average of 50 MW to 300 MW resulting in two to four hours of rotating browns in Mindanao since January this year.  –Daily Tribune