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DoE bats for P2B rehabilitation of Agus hydropower complex

By Amy R. Remo
Philippine Daily Inquirer
First Posted 14:35:00 09/07/2010

Filed Under: Energy & Resources, Alternative energy

MANILA, Philippines -- The Department of Energy is seeking congressional approval of the proposed P2-billion rehabilitation of the Agus hydropower complex in Mindanao to shore up the power generating capacity of the facility.

According to Energy Secretary Jose Rene D. Almendras, a technical proposal to rehabilitate two of the four units of Agus 6 has been prepared.

?But we're not allowed to do it yet. We have to go ask permission from Congress if we can defer the sale (of the Agus facility) and if we can rehabilitate, because (the government) is no longer allowed to invest,? Almendras explained.

Almendras told members of the House energy committee last Monday about the necessity of government keeping these hydropower complexes and enhancing their existing capacities to increase power supply on the island.

Currently, Mindanao sources over half of its electricity requirements from hydropower sources, particularly from the 955-megawatt Agus and Pulangi power facilities.

The Agus hydropower facilities have seven units that can generate a total of 700 MW. Agus 6, the first of the seven units, was constructed in 1953 while the newest of the power plants was Agus 1, which began operating in 1992.

The Pulangi hydropower plant in Bukidnon, which began operating commercially in 1985, can generate 255 MW.

Almendras earlier said that the DOE was no longer keen in privatizing or offering to investors the Agus and Pulangi hydropower plants because they could help stabilize supply and electricity prices on the island. The two facilities are critical power assets as these currently provide more than half of Mindanao?s electricity supply.

The energy chief acknowledged that the DOE had to seek a confirmation or a go-ahead from the Joint Congressional Power Commission (JCPC) to allow it to keep the facilities.

Under the Electric Power Industry Reform Act (Epira), the government is mandated to privatize all its power generation assets, including the Agus and Pulangi facilities.

?[The Agus and Pulangi are] not yet for sale. We don?t want to sell it yet, or maybe how long that will be, it will depend on how soon we can achieve true pricing [in Mindanao] and make appropriate adjustments to encourage investments,? Almendras pointed out.

Since it relies heavily on hydropower, Mindanao was the hardest hit by the prolonged drought experienced earlier this year, during which the island suffered power outages lasting up to 12 hours daily. It was only in July and August this year, with the onset of the rainy season, did the power supply situation in Mindanao began to stabilize.



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