At this critical period when the country is already experiencing recurring power outages across regions, the Department of Energy (DoE) has been advised to finally move away from parochial problem-fixing approach, and will instead re-work on strategy that enables it to secure commitment for new power projects, including for the largest island grid of Luzon.

The power supply buffer that can spare the country from another round of power crisis, it was noted, is not there anymore, so it is about time that the government re-thinks its strategies in policies that can entice investors to cough up fresh capital for power projects.

In an interview with reporters, Manila Electric Company (Meralco) president Jose P. de Jesus noted that the anticipated close of supply-demand gap may be pushed earlier by one or two years, the most critical timeframe of which could be around 2012 to 2013. He qualified though that they are also updating internal company studies, “to reflect current developments in the industry.”

Former energy secretary Francisco L. Viray, who is also President of Trans-Asia Oil and Energy Development Corporation, emphasized that the rehabilitation and uprating of the privatized power plants would be able to sustain Luzon grid’s requirement until 2014, yet he stressed that “what is crucial will be investments for new capacity… if the free market would be able to encourage fresh capital flow for power projects.”

The former energy chief, who was instrumental in helping solve the country’s worst power crisis of the ‘90s, explained that if all committed upgrades of plant buyers will materialize, Luzon grid will still be safe in the next three to four years, “but the DoE has to secure that commitment from the power plant owners/operators.”