Mindanao power problem seen to end in 2 years

DAVAO CITY, Philippines   â€“ It will take at least two more years before Mindanao will be free of power outages and enjoy a surplus of up to 1,200 megawatts (MW), an executive of the American Chamber of Commerce of the Philippines (ACCP) said over the weekend.

Phillip Dizon of the ACCP-Davao City chapter, expressed optimism the power shortage plaguing Mindanao for the past few years would end within two years when all the new coal-fired plants are completed.

“Aside from the surplus in supply, Mindanao will also have the cheapest power rate in the country by that time,” Dizon told The STAR.

The National Grid Corp. of the Philippines yesterday placed the power shortage in Mindanao at 228 MW, with peak demand at 1,120 MW and the actual supply pegged at 1,348 MW.

A large part of Mindanao, including Davao City, has been experiencing six to 12 hours of rotational blackouts these days.

At present, Mindanao is largely dependent on hydroelectric power supplied by Pulangi River in Bukidnon and Lake Lanao in Marawi City, both experiencing low water levels that caused the power curtailment.

Dizon said the power situation on the island would improve as soon as these new coal-fired power plants start operating by 2016.

Conal Holdings Inc. has started the construction of a 200 MW coal-fired power plant in the town of Maasim in Sarangani.

San Miguel Corp. is also building a 400 MW coal power plant in Malita, Davao del Sur while Filinvest Development Corp. is also constructing another 405 MW power plant at the Phividec Industrial Estate in Misamis Oriental.

Aboitiz Power Corp. through its Therma South subsidiary, is also about to complete its 645 MW coal-fired power plant in Barangay Binugao, Toril in this city. The project is expected to be operational by 2016.

Ayala Corp. is also reportedly set to build a P50-billion 405 MW coal-fired power plant in Lanao del Norte.

Except for Ayala Corp., all the other power projects are ongoing.

Dizon said Mindanao would benefit from these power projects as these will pump up investments in the south.

“We will be ready for new investments and even for industrialization by the time that power will be stable in Mindanao,” he said.