DOE outlines measures to cope with Mindanao power crisis

MANILA, Philippines - The Department of Energy (DOE) has outlined yesterday several short and medium-term solutions to the Mindanao power crisis.

Energy Secretary Jose C. Ibazeta said they have already drawn an action plan for Mindanao to ensure that there would be uninterrupted power during the critical election period from May 9 to 11.

Ibazeta said he is confident the actions outlined in the short- and medium-term solutions presented during the power stakeholders’ meeting in Mindanao will be able to address the growing power supply concerns on the island.

The stakeholders’ meeting was the second in a series to address growing concerns over the power shortage in Mindanao. It was attended by representatives from National Power Corp. (Napocor), National Grid Corp. of the Philippines (NGCP), National Electrification Administration (NEA), Philippine Electricity Market Corp. (PEMC), Misamis Oriental-1 Rural Electric Service Cooperative Inc., STEAG, Cagayan Electric Power and Light Co. Inc. [CEPALCO], Crystal Sugar Inc., Alsons, First Bukidnon Electric Cooperative Inc., Busco Sugar, and other organizations.

One such measure is bringing up the water elevation in Lake Lanao from 30 cms which produces 100 megawatts to be able to produce an estimated increase from 250 MW to 430 MW.  

In addition, the Energy Department was able to obtain the commitment of Napocor and the Power Sector Assets and Liabilities Management Corp. (PSALM) to enter into an operations and management agreement with Alsons and Conal Holdings to operate Iligan Diesel Power Plant 1 and Southern Philippines Power Corp. Both plants will generate an additional 15 MW power capacity.

Another private sector initiative is the commissioning of Crystal Sugar Co. Inc.’s biomass cogeneration plant which will be able to supply five to seven MW to the Mindanao grid, once issues about its operation have been resolved.

Aboitiz Equity Ventures’ Western Mindanao Power Corp. has also committed to increase its output from 90 MW to 100 MW.

The DOE has also received commitments from two large-scale industrial companies to drop their load. Global Steel Philippines in Iligan and Treasure Steel Corp. have both committed to drop 20 MW each.