Misamis Oriental power plant to shut down another unit

DAVAO CITY, Philippines – Power shortage in Mindanao is expected to get worse with the shutdown starting Monday of another unit of a coal-fired power plant in Villanueva, Misamis Oriental.

The STEAG State Power Inc.’s 210-megawatt capacity supplies 20 percent of the 1,300-MW (MW) power demand of Mindanao.

Most parts of the region have experienced two-hour power curtailment since STEAG imposed a preventive maintenance shutdown for its Unit 1 plant last Oct. 6.

The power plant is also set to shut down its second unit until Nov. 10, bringing to 210 MW the total power that would be taken from the Mindanao grid.

Jerome Soldevilla, STEAG spokesman, said the shutdown is necessary to ensure the power plant’s operational reliability and long-term power supply in the region.

This, as Davao City is set to get an additional 100 MW to its existing capacity to service its more than 300,000 customers in the cities of Davao and Panabo and the neighboring municipalities of Carmen, Dujali and Sto. Tomas.

Davao City is served by Mindanao’s largest distribution utility, Davao Light and Power Co. (DLPC), which signed a power supply agreement with Therma South Inc. (TSI) to secure power supply in the city and surrounding areas. It has an estimated peak demand of 290 MW.

The new power supply agreement provides that DLPC will receive 100-MW additional capacity once the construction of the 300-MW clean coal power plant of Therma South in Davao City is completed by June 2015.

DLPC executive vice president and chief operating officer Arturo Milan and Rolando Gaerlan, vice president for sales and marketing of Aboitiz Power Corp., signed the deal on Friday in simple ceremonies at a local hotel here.

In a statement, Therma South official Benjamin Cariaso Jr. said his company would build a world-class power plant in Mindanao.

For his part, Milan said the power supply agreement augurs well with the need for additional power sources in the South, especially amid the growing demand for electricity.

“The combination of rapid economic growth in the Davao Light franchise area and the expected deteriorating supply from the National Power Corp. require us to act responsibly and ensure the power needs of Dabawenyos in the future,” he said.

The power supply contract still has to be submitted for approval by the Energy Regulatory Commission to ensure that the rates are fair and in the best interest of consumers.