Energy Secretary Sharon Garin has voiced serious concerns over the proposed Pax Silica project, which aims to establish an advanced manufacturing and AI hub in New Clark City. With an expected demand of 3,000 megawatts, Garin believes that plugging this load directly into the Luzon grid could threaten its stability.
Potential Risks to Grid Stability
If you put it on the grid, and then suddenly this 3 gigawatt demand will be lost, the grid will just shut down.
Sharon Garin, Energy Secretary
Garin emphasized the risks of integrating such a large energy load from a single industrial area. She stated, "It’s too dangerous for our usual consumers. We don’t want to destabilize the grid because that will affect other businesses and households."
To mitigate these risks, Garin proposed that Pax Silica should ideally operate its own power generation system instead of relying on the existing grid. She noted that while initial phases of the project might be manageable with 100 or 200 megawatts, future expansions would necessitate a dedicated power plant.
The project, promoted by the Bases Conversion and Development Authority (BCDA), is expected to rely heavily on renewable energy sources. However, current proposals only cover a fraction of Pax Silica's anticipated requirements, raising questions about its feasibility.
Concerns Over Energy Infrastructure
Garin pointed out that while a solar power deal with Saudi Arabia’s ACWA Power aims to provide up to 500 megawatts, this still leaves a significant gap in supply. The proposed liquefied natural gas terminal could address some of this deficit, but it introduces additional logistical and environmental concerns.
With the need for reliable and consistent energy supply, Garin insists that the project must ensure high-quality energy availability to avoid interruptions, especially for data centers that cannot tolerate power outages.
As discussions continue, Garin emphasized the need for careful planning and collaboration among various government departments to align energy generation with actual demand from potential locators.
Garin concluded, "Energy is one big factor, and I’d rather do it properly," highlighting the necessity for a comprehensive and rational strategy moving forward.