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Monday, November 12, 2012

Power body moves to ensure enough electricity in Mindanao by 2013

DAVAO CITY - As Mindanao braces for the worst in 2013 when increased demand for power is aggravated by supply shortfall, efforts are being exerted to ensure the situation is addressed according to the Mindanao Development Authority (MinDA) which heads the Mindanao Power Monitoring Committee (MPMC).

“Mindanao is having a precarious power supply situation with average daily shortage of about 150-200MW since the start of 2012,” said Romeo M. Montenegro, MinDA director for investment promotion and public affairs, in a press briefing here Monday.


Based on projections by PAG-ASA, El Nino is expected to hit Mindanao summer of 2013 and such weather phenomenon could mean reduced water levels and reduced output by the Agus and Pulangi complex.

Mr. Montenegro added that the supply deficit could persist to around 300-400MW if no immediate measures are taken and may only improve in 2014-2015 when committed projects come on line.

“If we don’t do anything now, we might as well brace ourselves for two years of possible rotating brownouts, with 4-8 hours especially in areas with no embedded or additional contracted capacities,” he added.

However, Montenegro said the shortfall can be addressed through the addition of capacities from quick rehab and uprating of the Agus-Pulangi hydro complex to increase output by 100MW.

He also cited tapping of embedded generators through the proposed Interim Mindanao Electricity Market (IMEM) or the private sector’s voluntary Interruptible Load Program (ILP) which could generate 200-300MW. While another option currently being pursued is the reopening of the Iligan Diesel Power Plant (IDPP) which is capable of producing 100MW in 6 months time.

According to the Department of Energy (DOE), which has slated a series of regional consultations on the Mindanao Energy Plan starting next month, the island needs an additional 1,000MW of new capacity by 2020 and an additional 1,500MW by 2030.

“A serious power shortfall persists (300MW as of Monday) but we expect improvement of the situation when the 200MW Steag coal plant is back on stream by November 11 after going through preventive maintenance shutdown,” Mr. Montenegro said.

He also cited other challenges facing Mindanao power such as the need to improve cheap hydro capacity which has been compromised by river siltation and rehab requirements; the rising share of costly fossil fueled power plants in the energy mix, and the need to fully tap clean, renewable and indigenous power sources to minimize foreign exchange and environmental costs.

Created through Executive Order 81 signed by President Benigno S. Aquino III on 30 July, MPMC is tasked to facilitate all measures that will improve power situation in Mindanao.

The committee is composed of MinDA, Department of Energy, Energy Regulatory Commission, National Electrification Administration, National Power Corporation, Power Sector Assets and Liabilities Management Corporation and representatives from Mindanao Electric Power Alliance and the Association of Mindanao Rural Electric Cooperatives

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