2.2 Visayas

2. EXECUTIVE SUMMARY (Volume 2: Regional Energy Plans)

The 2005 PEP Update embarked on the preparation of Regional Energy Plans (REPs) of selected regions to ensure more focused, comprehensive, region-specific energy plans. This initiative was consistent with the strengthened mandate of the DOE to “develop, prepare and update an integrated national energy plan and other support plans for the energy sector”. The REPs likewise aim to highlight the role of energy as a critical sector in the region’s development and provide in-depth details that will substantiate the indicative plans and programs under the PEP Update.

2.2 Visayas

Known for its indigenous energy resource potential such as geothermal, hydropower and biomass, the Visayas region is envisioned as the center of renewable energy development in the country. For this Plan Update, formulation of REPs for Region VI and VII were initiated in view of the anticipated power crisis in Panay Island on 2005 and the fast growing industrialization in Cebu.

2.2.1 Regions VI

For Region VI, the development of the indigenous energy resources particularly biomass will be given priority. There are four identified biomass projects for power generation, namely: Talisay Bioenergy (30 MW), Victorias Bioenergy (50 MW), Bais Bioenergy (25 MW) and Antique Bioenergy (2 MW). For geothermal, potential sites located in Bago City and Mandalogan are capable of generating an aggregate capacity of 74 MW. On the other hand, a total of 65 MW of hydropower is available for investment. These include the 29-MW Timbaban Plant, 4-MW Igbalo Plant and the 32- MW Villasiga Plant. Meanwhile, harnessing of coal will be supported by the DOE, as the region is expected to produce 28 MMMT.

About 235 MW of additional capacity requirements has been lined up. Among the committed projects are the NPC’s 110-MW Pinamucan Diesel Plant, the 40-MW Northern Negros Geothermal, the 30-MWTalisay Bioenergy and 25-MWBais Bioenergy. For the off-grid power rrquirements, two diesel-fired generators will be located in Antique (323-kW Caluya DPP) and Iloilo (263-kW Gigantes DPP).

The Expanded Rural Electrification Program for the region include the energization of the 134 unenergized barangays from 2005 to 2008, 1,554 ckt.-km. of distibution line expansion, 748 ckt.-km. of distribution lines for rehabilitation and installation of substations with total capacity of 230 MVA.

For the downstream sector, establishment of new petroleum product facilities to increase the region’s supply capability will be established in various locations in the region.

2.2.2 Regions VII

For Region VII, exploration, development and utilization of energy resources will be pushed to meet the expected 5.6 percent increase in energy demand during the ten-year period. The 20-MW Palinpinon   Optimization plant and the 40-MW Dauin project are two geothermal plants available as indicative capacity addition in the region while a total of 71 MW of hydropower projects has been lined up for development and implementation. Coal production in the region is expected to increase from a level of 54 MT in 2005 to 75 MT in 2014.

In terms of the region’s electricity requirement, a total of 385 MW capacity will be added to the total electricity supply of which 29 percent will be sourced from renewable energy options. Several transmission and interconnection projects are scheduled for implementation which include, among others, the Northern Negros associated transmission lines, Palinpinon-2 Optimization associated transmission lines and the 138- kV Leyte-Bohol interconnection facilities. For the small island grids, cumulative installed capacity is estimated to reach 49 MW in 2014. A total of four additional substations with an aggregate capacity of 20 MVA is targeted for commissioning during the planning period.

The 51 remaining unenergized barangays is scheduled for electrification in 2005 and 2006. A total of 687 ckt.-km. of distribution lines will be commissioned, 222 ckt.-km. of distribution lines will be rehabilitated and a total of 145 MVA substation capacity will be installed.

For the downstream sector, optimized utilization of natural gas from onshore Libertad field is envisioned with the projected 250 units of CNG-fueled public utility buses (PUBs) plying the north Cebu and Cebu City by 2008. Likewise, continuing promotion for clean coal utilization will be pursued especially with the commissioning of the RP-Japan Coal Briquetting Demonstration Plant in Cebu.