DoE ensures stable power supply in Mindanao

MANILA, Philippines—The Department of Energy has said it will be able to ensure stable power supply in Mindanao, whether or not the Joint Congressional Power Commission (JCPC) allows the sale of Agus-Pulangi hydropower complex.

“Either way (we sell it or not), we have a plan on what to do to ensure that increases in electricity prices are mitigated, and supply is continued. If they tell us not to sell it and for us to continue operating it, we’re also preparing to do that. But again, either way we’re OK,” said Energy Secretary Jose Rene D. Almendras.

Almendras, however, declined to cite specific plans as he did not want to preempt the decision by the JCPC. For the energy chief, the main concern would be putting in place the necessary mechanisms to ensure stable power supply and prices.

Some lawmakers have disagreed with the DoE over the planned sale of the Agus-Pulangi hydropower complex to private sector investors, noting that this might jack up electricity rates in Mindanao. This power complex, which generates roughly 700 megawatts, currently provides over half of the electricity requirements of Mindanao.

However, the Electric Power Industry Reform Act of 2001 mandates the sale of all the power generation assets and contracted capacities held by the government to ensure real industry competition.

But while the Agus-Pulangi complex is currently within government control, the National Power Corp. (Napocor), is hoping to start by 2012 the P3.65-billion rehabilitation activities to help improve the generating capability of these facilities.

The proposal is to conduct dredging activities at the 255-megawatt Pulangi and the equipment rehab at a unit of the 700-MW Agus plants. As it is, the dependable capacity of these two power plants are now much lower at roughly 700 MW combined, according to Napocor president Froilan A. Tampinco.

Tampinco earlier explained that the rehabilitation of Agus 6 will increase the capacity of the unit to 69 MW from the current 52 MW, at a cost of P2.45 billion. This particular unit was the first among the seven units that were constructed and that began operations in the 1950s.

Napocor is currently waiting for the National Economic Development Authority (NEDA) board to approve the project before it starts the bidding process.