DOE to allow power coops to tap unused power in Mindanao

MANILA, Philippines—The Department of Energy is looking to mandate electric cooperatives and distribution utilities in Mindanao to get the excess power supply from power generation firms to avert rotating brownouts on the island.

While there seems to be a lack of power reserves in Mindanao, there is actually about 100 megawatts of “undispatched power” or supply that was not contracted by the electric coops and distribution utilities, according to Energy Secretary Jose Rene D. Almendras.

“We’re checking why this was not bought. I think some of the electric cooperatives are hesitant to buy power because their customers might blame them for sourcing higher priced power. It’s a matter of pricing differential,” Almendras explained.

“At the end of the day, there is enough generation for the demands in Mindanao. The problem now is several power plants are going through a maintenance cycle. However, even as those plants are being maintained, there is still a generation capacity that is ready for purchase,” he added.

Almendras disclosed that one of the options being looked at by the DOE now would be to compel the DUs and ECs to buy that existing power through a department circular.

“We are studying options. If I have to, I’ll issue another department circular, which will hopefully be effective. We’ re still studying how to do it because on one hand, it will also be difficult to force people to buy more expensive power. I think the best way is, the consumers should complain to their cooperatives why they don’t have electricity. It is the distributor who’s supposed to buy the necessary power to sell,” Almendras explained.

Based on the data of the National Grid Corp. of the Philippines, the system capacity of the Mindanao grid as of Wednesday, stood at 1,190 MW, while the peak reached 1,255 MW.