BY EMILIA NARNI J. DAVID
Business World Online
IN 2001, the Electric Power Industry Reform Act (EPIRA) was enacted in a bid to improve operating efficiencies, cut down on power costs and limit losses for the cash-strapped government, then the dominant player.
With the state making it a policy to get out of the industry, the law also spurred another development: businesses diversifying into power generation.
Experts see this as a positive move -- one that will help address the country’s power shortages -- but also say it could be a risky foray for inexperienced businesses looking to take advantage of an earnings opportunity.
"There is a huge gap in that sector. While it is highly capital intensive ... [the market has a] stable return of equity," 2TradeAsia.com analyst Grace C. Cerdenia said.
A 300-megawatt (MW) supply shortfall has been projected for Luzon for 2011-2012, with another 11,900 MW to be needed up to 2030, the Energy department has said. For the Visayas, 2,150 MW of additional power is needed until 2030 and for Mindanao the requirement is a slightly higher 2,500 MW.
Read here
Business World Online
IN 2001, the Electric Power Industry Reform Act (EPIRA) was enacted in a bid to improve operating efficiencies, cut down on power costs and limit losses for the cash-strapped government, then the dominant player.
With the state making it a policy to get out of the industry, the law also spurred another development: businesses diversifying into power generation.
Experts see this as a positive move -- one that will help address the country’s power shortages -- but also say it could be a risky foray for inexperienced businesses looking to take advantage of an earnings opportunity.
"There is a huge gap in that sector. While it is highly capital intensive ... [the market has a] stable return of equity," 2TradeAsia.com analyst Grace C. Cerdenia said.
A 300-megawatt (MW) supply shortfall has been projected for Luzon for 2011-2012, with another 11,900 MW to be needed up to 2030, the Energy department has said. For the Visayas, 2,150 MW of additional power is needed until 2030 and for Mindanao the requirement is a slightly higher 2,500 MW.
Read here
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