ERC allows continued operation of Mindanao plants

MANILA, Philippines - The Energy Regulatory Commission (ERC) has allowed the continuous operations of hydroelectric and diesel-fired power plants in Mindanao with an aggregate capacity of 1,000 megawatts (MW).

The energy sector regulator renewed the compliance permit of state-run Power Sector Assets and Liabilities Management Corp. (PSALM) and Mindanao Energy Systems Inc. (Minergy) for eight hydropower projects.

It also granted a certificate of compliance (COC) to Monark Equipment Corp. for the operation of three diesel generating facilities.

“The ERC’s renewal of PSALM and Minergy’s COCs indicate continuance of their respective commercial operations for the next five years in strict compliance with financial, environmental, and technical standards,” said ERC chairperson Zenaida Cruz-Ducut.

A COC is a requirement prior to starting or continuing the commercial operations of a power generation plant.

PSALM’s COCs are for its Agus I and Agus II in Lanao del Sur and Agus IV, Agus V, Agus VI, Agus VII and Pulangi IV hydroelectric power plant facilities in Bukidnon.

The hydropower plants have a total capacity of 983.21 MW.

The Agus and Pulangi facilities were formerly owned and managed by the National Power Corp. (Napocor) before being transferred to PSALM, which is the state firm in charge of privatizing government power assets as well as managing Napocor’s power plants and debt.

ERC also renewed the compliance permit of Minergy for its 9.21-MW mini-hydropower plant along the Cabulig River and 90.4-kilowatt generating set located in Misamis Oriental.

Minergy provides a portion of the power requirements of its sole customer and part-owner Cagayan Electric Power & Light Co. Inc. that serves Cagayan de Oro City and three other municipalities in Misamis Oriental.

ERC said the applications were approved after PSALM and Minergy “were able to establish their financial, technical, and environmental abilities to sustain the operations of their respective power plants.”

To date, hydropower plants account for 53 percent of the total supply in Mindanao. The Mindanao grid, which needs an average of 1,300 MW daily, has been reeling from rotating brownouts since early this year due to low generating capacity and the shutdown of key power plants.