Private sector seemingly not interested in building new facilities

THE GOVERNMENT is looking at reviving, and operating, the mothballed 850-megawatt Sucat bunker fuel plant given an apparent lack of private sector interest in the power sector.

THE PLAN includes converting the bunker fuel-fired plant into one using natural gas from Malampaya. — www.psalm.gov.ph

"We are reviewing the revival of the plant as one of the options in case no new plants will be put up. The plant will also be handled by the government," Energy Secretary Angelo T. Reyes told a Joint Congressional Power Commission (JCPC) hearing yesterday.

The revival of the plant, located along the shoreline of Laguna de Bay, had been mooted two years ago but state-owned Power Sector Assets and Liabilities Management Corp. (PSALM) later decided to include it in the asset privatization schedule.

An August 2009 bidding has been set but PSALM spokesman Conrad S. Tolentino said the plant would kept off the auction block if the government does decide on its revival.

Mr. Reyes noted that in line with the thrust to promote renewable energy, the Sucat plant could be converted into a natural gas-fired facility by interconnecting it with the Malampaya project’s Batangas depot.

Mr. Reyes, in announcing the review, said Section 71 of the Electric Power Industry Reform Act of 2001 (EPIRA) allowed the government to put up needed infrastructure if no private investor was willing to invest.

Electric Power Industry Management Bureau director Mylene C. Capongcol said investors were wary given the global financial meltdown and the lack of takers for their power.

The country’s energy plan is up for review given a downturn on demand, which may defer the critical years for the regions in terms of power shortage — 2012 for Luzon, 2009 for Visayas and Mindanao — but also reduce investments.