By: Sewerbang

Sewerbang — Sat, 07 Jul 2012 13:57:00 +0000

What is not mentioned here is that NPC/SPUG heavily subsidizes the cost of electricity in OrMin, which is basically the generation charge + the distribution charge. Without this subsidy from the central gov’t the end user could be paying close to 20 P kw/h. The windmills will deliver to Ormeco electricity at a lower cost than Mirant, but those savings will mostly reduce the subsidy coming from NPC/SPUG and not the end user kw/h-rate. The windmills do share a little of their profit with the community which goes to reducing the end user rate but it’s very minimal. OrMin generation capacity would need to be increased by about 10 MW so that there would be an end to the load shedding and resultant brownouts. Problem is NPC/SPUG wouldn’t be happy because they’d have to shell out more subsidies. Investors aren’t too keen either because payments for the power generated don’t always come as scheduled. The 300MW P11Bio Submarine Cable will come once OrMin has hydro power to export to Luzon, but it will never be built to close OrMin’s 10 MW peak power deficiency. In the end let’s hope the wind will pick up towards 7pm (peak power consumption) so that the windmills would spare us the next brownout. If you have more money than patience get a big uninterrupted power supply – UPS and diesel genset with ATS.

Comments on: High power rates and brownouts

By: Sewerbang