Business sector banks on new sugar act to improve Negros power supply

Bacolod City – The business sector in this city is optimistic about the improving power supply in Negros Occidental after the recent signing of the Sugarcane Industry Development Act.

 

On the sidelines of the Asia Pacific Economic Cooperation (APEC) 2015 summit here, Frank Carbon, president of Metro Bacolod Chamber of Commerce and Industry, said the signing of the Sugarcane Industry Development Act will not only benefit the sugarcane farming industry but also the power sector in Negros Occidental which buys 80 percent of its power supply from the nearby provinces of Samar, Leyte and Cebu.

 

“The more important part of that Act is that it will create two more revenue streams for the (sugarcane) industry – the fuel ethanol and power from biomass,” Carbon said.

 

“Meaning... if your'e in sugar industry now, it will no longer be just turning your sugarcane into sugar or to molasses or to alcohol. But now you have options of turning your sugar juice to ethanol or your bagasse (agricultural waste) to biomass for power plants,” Carbon noted.

 

Carbon explained that under the Sugarcane Industry Development Act, signed by President Benigno Aquino III late last month, a total of P2 billion will be allotted annually to the sugarcane industry, 50 percent of which will be for infrastructure and irrigation system and the other 50 percent for research, block farming and assistance to farmers.

 

With the new law, Carbon said biomass power plants in Negros Occidental can have additional bagasse supply as all marginal lands in the province not suited for sugarcane will now be required to be planted with trees and grass.

 

“The signing of the Sugarcane Industry Development Act would augment the limited supply of bagasse for biomass power plants,” Carbon said.

 

“We are also expecting increase in the production of ethanol fuel also for power plants,” Carbon added.

Carbon pointed out that currently, it takes about seven to eight months to plant and harvest sugarcane, thus, the industry cannot provide bagasse, the leftovers of sugar cane after it has been extracted of its juice, to biomass power plants.

 

Only 20 percent of Negros Occidental’s power supply is generated internally, with the major portion sourced from Samar, Leyte and Cebu.

 

“Thus, the island is vulnerable to power disruptions since getting supply from another island has its challenges like congestion and breakdown of transmission lines,” Carbon said.

 

Negros Occidental is the biggest producer of sugar in the Philippines. – VS, GMA news