CEBU CITY – To avert the looming power crisis expected to hit Cebu in the next few months, power producers and the Cebu provincial government are eyeing 15 megawatts of excess energy from a Panay-based power firm for a possible power swap.

The proposed power swap would enable Iloilo-based Panay Power Corporation (PPC) to swap the same volume from the Cebu-Negros-Panay (CNP) grid and channel it for distribution by NAPOCOR to Cebu.

PPC could directly sell its excess power to the Balamban Economic Zone (BEZ) and Carmen Copper Corp. (CCC) without entering into an agreement, said its sister company, Global Business Power Corp. (GBPC).

These details of the power swap were explained during a power point presentation on Cebu’s energy situation attended by Capitol officials and energy sector stakeholders at the Cebu Provincial Capitol.

Jesus Alcordo, GBPC president, said the power swap can provide short term relief to Cebu's power deficit.

Ed Santina, GBCP Assistant Vice President, said the PPC's excess power would be transmitted to Cebu through submarine cables. Power will be directed to the Sigpit switch yard in Toledo where the meter for the proposed power swap would be located.

From the Sigpit switch yard, power is transmitted to the Toledo Power Plant for distribution to the end users, Santina explained.

Under the proposed power swap, which recently garnered support from Cebu's business community, the PPC is expected to provide Cebu with 15 megawatt (MW) of excess power or even more.

During the presentation, Cebu Governor Gwendolyn Garcia said additional power is needed since there is no immediate alternative additional power supply in sight.

“With whatever energy we save from the PPC, we will divert it to Cebu,” said Alcordo.

Garcia said Cebu posted the biggest increase in power demand with an average of 10.1 MW over last year. The high power demand, aging power plants and the shortage in the Cebu Negros Panay (CNP) grid, led to an energy deficit of 40 to 50 MW in Cebu.

The Visayan Electric Company (VECO) had already issued a forecast of a power shortage of up to 40 mega watts in the next months due to the holidays.

To cushion the impact, VECO has launched the Interruptible Load Agreement (ILA) participated in by major corporations in the province, which would help ease the tight power situation by using their own generator sets for at least 20 hours per month so the entire province won’t experience blackouts.

For the past few months since the ILA was implemented, VECO said participating business establishments can only de-load 17MW, which is actually not enough to address the problem. There is still power shortage, hence additional businesses were encouraged to participate.

Garcia said aforesaid power swap is a viable option since the ILA can only partially help ease the power problem.