Mindanao power situation improves as STEAG plant resumes operations

MANILA, Philippines - State-run National Power Corp. (Napocor) said yesterday the power situation in Mindanao has improved with one of the power plants that went down recently has returned operations.

 “With STEAG generating at 210 megawatts (MW) (yesterday), generation is more than enough to supply the demand of Mindanao grid,” Napocor spokesman Dennis Gana said in a text message.

He said the capability of the grid to supply the power needs of Mindanao is now back to normal.

 “We have a total generating capability of 1,380 MW and our forecast peak today is 1,167 MW plus 138 MW in required reserve,” he said.

The Napocor official also noted that “we have a net dispatchable reserve of 75 MW.”

The 210-MW Mindanao coal plant in Misamis Oriental, owned by German firm Evonik Industries AG (formerly STEAG) and Aboitiz Power Corp., was shut down for maintenance work early September which caused, among other factors, the rotating brownouts in Mindanao.

Recently, Napocor’s power generation facilities and two independent power producers (IPPs) have been temporarily closed due to a number of reasons.

Napocor said there was a decrease in capacity due to the tripping of Agus 1 (Unit 2) last Aug. 10 and shutdown of the 100-MW Western Mindanao Power Corp. (WMPC), coupled with the scheduled preventive maintenance operations of Agus 2 (Unit 1), Agus 5 (Unit 1), Pulangi 4 (Unit 1) and Mindanao (STEAG) Coal (Unit 1).Overall, more than 400 MW out of a total of 620 MW dependable capacity were affected and caused the frequent power outages in the region.

The Department of Energy earlier admitted a possible power supply problem for the whole country if no new power facilities are put up soon. The DOE has been issuing a warning that by 2010, Luzon would be needing additional capacity.

Under the Electric Power Industry Reform Act of 2001, Act 9136, the government, through Napocor, is prohibited from entering into a power generation contract.

Thus, the DOE encourages more private sector participation in the construction of more power facilities in the country.

Energy Secretary Angelo Reyes earlier said with an annual demand growth of 4.4 percent, the Philippines would need 4,100 MW additional capacity for the period 2008 to 2017. 

Of the 4,100 MW, about 3,000 MW would be required in Luzon for the 2008-2017 period; 500 MW for Visayas and 600 MW for Mindanao. 

He noted that the Visayas grid has been experiencing rotating brownouts since 2008 due to very tight power generation capacity in Cebu and Panay. 

He said Mindanao is also vulnerable and is now encountering power supply problem.