A FIVE-HOUR power outage in the Philippines inflicts about P556 million in economic losses. If not resolved, the country stands to lose more as the energy sector continues to face problems such as insufficient power supply, congested transmission lines, and recurring damages from disasters, according to energy experts.
The economic consequences of a power interruption are measured by the value of lost load (VoLL) or âthe monetary indicator expressing the costs of interruption of electricity supply on a macro levelâ, according to the Philippine Independent Power Producers Association, Inc. (PIPPA).
In 2020, the countryâs VoLL was at P20.65 per kilowatt hour (kWh). To put this into perspective, for every five hours of no electricity, our country loses about 500 megawatts, which equates to P556 million in economic losses. Itâs a hefty amount to lose for a developing country.
Power interruptions reported by electric cooperatives are classified into four: scheduled (maintenance and improvement work), major storms, power provider (generation and transmission problems), and unscheduled (equipment and system failures, human error, fallen trees, and unknown causes).
Insufficient power is a confluence of several things, such as supply and system issues and barriers preventing entry of private companies or potential generators. To mitigate the losses, the energy sector can determine the acceptable number of hours of power interruption, known as loss of load expectation (LOLE). The Philippinesâ LOLE is 10 days a year, significantly higher than Singaporeâs one hour in 10 years.
Also, there is a need to address transmission lines issues. Our main highways of electricity first need to improve, so when they traverse our local grids, energy delivery also improves. From Luzon to Visayas and vice versa, the lines are utterly congested. Without the congestion of the transmission lines, we may see a vast improvement and a decrease in power interruptions.
It is good that the Department of Energy (DOE) is pursuing renewable energy sources to help increase the power supply. For offshore wind energy, it has 63 approved service contracts. This amounts to 170 percent of the current capacity in the country.
DOE is also considering the development of nuclear energy, a move supported by the Duterte and Marcos administrations. Nuclear is considered in the energy mix of the future.
But at the end of the day, we need to listen to our people and address their concerns about nuclear power. We must not lose sight of the potential of other technologies to achieve energy stability and security.
