Meralco PowerGen Corp. warned of a possible tight power supply by 2024.
Meralco PowerGen senior vice president Chrysogonus Herrera said, “without new builds, supply tightens by 2024” as ongoing construction of brownfield power plants could only meet demand until 2023.
“Because hydro capacity thins out as demand peaks in the second quarter of each year, the exiting capacity is barely sufficient to meet demand by 2021,” Herrera said in a presentation during the recent PowerTrends 2018 forum.
He said the ongoing construction of power plants such as the 500-megawatt San Buenaventura, 300-MW Masinloc and 600-MW Diningin coal-fired power plants would meet demand until 2023.
“Really we need to get new builds started now,” he said.
Herrera said about 25 power supply contracts for 3,640 megawatts of capacity were awaiting approval at the Energy Regulatory Commission.
“Of the 89 PSAs submitted to ERC in March and April 2016, there remains 25 PSAs for 3,640 MW of contract capacity whose pending approval prevents the financing and construction of associated new projects,” he said.