Almendras to compel Mindanao power utilities to forge tieups with gencos

MANILA, Philippines - Energy Secretary Jose Rene Almendras said he would compel Mindanao-based distribution utilities (DUs) and electric cooperatives (ECs) to enter into bilateral contracts with generation companies to help address the power supply shortage in the region.

“In effect, the problem is supply. What we are doing right now is we are trying to find a way to resolve the legal constraints to allow DUs and ECs to enter into contracts with generation companies, Almendras said in a press briefing yesterday.

He warned that if not resolved, Mindanao will continue to suffer up to two hours brownouts daily in the remaining months of the year and will worsen next year especially on the summer months when the hydropower plants are not running at full capacity.

He said he would also invoke the regulatory ruling, allowing the speedy decision on rate applications of DUs and ECs.

“If the coops and end-users will get the contracts, we will ask the ERC (Energy Regulatory Commission) to speed up the approval process. If possible we will invoke a ruling that ERC could approve an application within a 30-day period. We already have initial discussions with the ERC on the legal constraints,” he said.

For its part, the National Grid Corporation of the Philippines (NGCP), the operator of the country’s power transmission highway, reiterated that it has the capability of transmitting sufficient power in the Mindanao grid.

NGCP spokesperson Cynthia Perez-Alabanza said the company’s capability to transmit power to the Mindanao grid will be reinforced further once the repair and energization of two back-up lines are completed this month.

Alabanza said they are expected to energize within this month the 230 kilovolt Maramag-Bunawan lines which will serve as a back-up line in case of any line tripping in the South.

The repair works on Agus 2-Kibawe 138-kV Line 1, on the other hand, will also be finished within the month of October. This line will also be used as back-up to support the steady flow of power in the Mindanao grid.

She said the NGCP is committed to helping the government solve the power crisis in Mindanao as she warned that the situation may worsen in the coming years if the problem would not be resolved now.

“What is needed is to look for ways on how to run the 200 MW of TMI. It would definitely put an end to the 32 MW deficiency in supply right now…but the scenario next year is another story,” Almendras said.

“Definitely, Mindanao would need additional supply for next year particularly on summer months when most of the hydropower plants probably would not run at full capacity, Almendras pointed out.