Power crisis is one of the most serious issues of present times which had weaken smooth operation of industrial activities in the country. It is any great blockage in the supply of energy causes in the economy. It often refers to one of energy sources used at a certain time and place.
The main cause of power crisis is because there is a worldwide shortage of coal so that we cannot generate enough electricity. With the coal-powered generating plants unable to produce enough electricity, the other plants using hydro, thermal, diesel and wind won’t be able to cover up the shortage. Also the cause may be over use or aging transportation that restrict power supply. A crisis can develop due to industrial actions like union organized strikes and government restriction.
This summer we’re going to experience brownouts; we don’t know what day or hour but we need to be prepared anytime. In some places in Metro Manila, they are now experiencing brownouts and yes, some of them are very irritated because of the weather. But some are trying to be cool because they can save on electricity; men’s are taking off their shirts while women’s are having their fans to make air. At night, they can use candles for their lights, though it can cause fire but taking care is the best thing to do.
In different areas in Mindanao experiencing brownouts ranging from one to eight hours per day. They need an additional generating capacity of 2,500 megawatts from 2009 to 2030 for its power supply shortage. Mindanao has the biggest problem in electricity in the country. They relied on hydro facilities to produce more than half of the power requirements. The needed demand on their island is 2,200 megawatts while the available was only 863 megawatts.
In 1995, the transmission and distribution losses in the country were estimated at 7.2 percent. As reported by the power plants, losses are estimated from the difference between energy produced and energy sold to end consumers. The difference between what is produced and what is consumed constitute transmission and distribution losses.
In recent years, the most significant event in the Philippine energy industry was the Electric Power Industry Reform Act (EPIRA) of 2001. After seven years of congressional debate and litigation, the Act came into force on June 26, 2001. The act has three main objectives, the first one is to develop indigenous resources: the second is to cut the high cost of electric power in the Philippines; and the third is to encourage foreign investment. It’s their enterprises.
The EPIRA required the National Power Corporation or Napocor to break its vertically incorporated belongings in a small group such as generation, transmission, distribution and supply to prepare the eventual privatization. And the government also will sell off its share of Meralco, a vital distribution utility on the island of Luzon that serves Manila and the immediate surrounding area by buying power from various Independent Power Producers (IPPs).
Napocor will need to transfer its existing power purchase obligations to private distributors, and also to renegotiate high-priced contracts. The cost savings lie in the fact that private distributors will likely be unwilling to enter into agreements that are above market rates. There are other financial incentives for the government as well. Napocor's $23 billion in debt and $9 billion in power purchase agreements are invalid, and the government must already contribute $300 million per year to keep Napocor afloat. In order to make the sale of Napocor more attractive to investors, the government has captivated a significant amount of Napocor's debt. In addition, the $9 billion in power purchase agreements with IPPs also will be sold off. After many delays, the Philippine government plans to make another attempt at privatization in March 2006.
The electricity demand in the Philippines is expected to grow by around 9% per year through the end of the decade, requiring as much as 10,000 MW of new installed electric capacity. Due to its geography, the Philippines have problems linking all of its larger islands together into one grid and ensuring availability of electric power in rural areas. The government has set a target date of 2006 for full electrification, and also is taking steps to link together the country's three major power grids (Luzon, Visayas, and Mindanao).
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