Vol. XXII, No. 113 [ BusinessWorld Online ]
Friday, January 9, 2009 | MANILA, PHILIPPINES
DAVAO CITY — A continuing property boom here will result in a 3.85% rise in electricity consumption that will lead on to a 4% average annual increase from 2009-2010, estimates from Davao Light and Power Co. showed.
The same report showed that this city consumed 1.081 billion kilowatt-hours (kWh) as of November last year, about 2.96% higher than the same period in 2007.
Davao Light also distributed a total of 1.4 billion kWh in the same period to the rest of its franchise area, consisting of Panabo City as well as the towns of Sto. Tomas, Carmen and Dujali in Davao del Norte.
In that same period, Davao Light bought 1.332 billion kWh from the National Power Corp. (Napocor) and 26.8 million kWh from its sister company Hedcor Inc.
The company also used its backup Bajada diesel power plant during power outages.
Because of the scope of its franchise area, Davao Light also signed a new supply agreement with sister firm Hedcor Inc. to help cover its requirements this year. Both companies are part of the giant Aboitiz Power Corp.
Under the agreement, Hedcor will start supplying Davao Light on August 1, 2009. The first phase of the agreement will mean additional 200 million kWh. On August 1, 2010, another 200 million kWh will be supplied to Davao Light.
The new power sources will come from Hedcor’s 42.5 megawatt hydroelectric power plant in Sibulan Sta. Cruz, Davao del Sur and its smaller plants in the city.
However, its plan to set up another hydroelectric plant in Tamugan has met opposition from the Davao City Water District, which is also plans to use Tamugan River for its expansion program.
Hedcor had earlier said it would not proceed with its Suawan power project due to low viability.
But one bigger source of power for the city will come from the Mt. Apo geothermal power plant which will be turned over this June to the Lopez-owned Energy Development Corp., formerly a subsidiary of government-owned Philippine National Oil Co. Alejandro V. Catacutan, company president, said the plan is to expand the capacity of the geothermal plant to 154 MW by 2012.
In an interview last month, Mr. Catacutan pointed out that the company has already started the design of the expansion program. At present, he said, the plant is churning out about 104 MW, or about 12% of the total power requirements of Mindanao. If it pursues the plan, Mr. Catacutan said the company is expected spend about $150 million on the expansion. — C. Q. Francisco
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