4 to 8-hour brownouts loom in Mindanao

MANILA, Philippines – The Department of Energy warned on Thursday that power consumers in Mindanao might face as long as four to eight hours in rotating brownouts this coming summer as the hotter temperatures could further constrain power supply in the island.

Energy Undersecretary Josefina Patricia M. Asirit said that this would be the worst case scenario that Mindanao could face if conditions did not improve.  Such a situation is likely in areas where electric cooperatives failed to secure adequate capacities from the power generation companies, according to Asirit.

But should existing conditions persist, the daily average curtailment may only likely reach 150 megawatts to 200 MW during the hot summer months, equivalent to brownouts lasting two to four hours. It should be noted that since the year started, the Mindanao grid has been experiencing tightness in supply because it does not have adequate reserves that are available for dispatch.

“When we say it’s not available, it does not mean that there is a plant that’s down or offline. But rather there are generation capacities that are not being nominated for dispatch. We have identified certain areas where the electric cooperatives, although they have power supply agreements with private generation companies, are not able to nominate their demand,” Asirit explained.

In short, there are electric coops that refuse to abide by their existing agreements and to contract capacities to ensure adequate supply for their respective franchise areas.

To help resolve this issue, Asirit said the DOE has begun an inventory of the nominated and dispatched capacities of the Agus-Pulangi hydropower complex, which has been generating roughly 700 MW for the Mindanao grid.

Another option being considered earlier by the DOE is to compel electric coops to purchase even the more expensive power from the diesel-fired facilities if only to ensure adequate supply for the grid.

Energy Secretary Jose Rene D. Almendras earlier warned electric cooperatives in Mindanao that the DOE would cut off the power supply of those not strictly following the provisions of their respective supply contracts, as a way to instill the much-needed discipline in the energy market on the island.

By lack of discipline, Almendras said he was referring to the overdrawing of power from the 700-MW Agus-Pulangi hydropower complex by some electric cooperatives.  He said their refusal to contract more capacities from the available diesel-fueled plants have been causing the rotating brownouts in the island.

“We will now instill discipline. If a coop’s contract is for 10 MW, it should not draw 11 MW or 12 MW as what is happening now. We have to institute and follow the market structures,” Almendras said in a recent interview.

Some electric coops in the so-called upstream of the line are able to draw more from the Agus-Pulangi hydropower complex, which means that those at the end of the line are left with less power supply and will thus have to suffer rotating brownouts, according to Almendras.

“The way to equalize the drawing of supply from Agus-Pulangi is by instilling the contract provisions. We renewed those power supply contracts and each coop is allocated a certain volume. If they draw more than that, somebody else suffers. Many are fighting to get a bigger share of the hydropower supply because it’s cheaper. But we will make sure there is equitable allocation among Mindanao coops,” Almendras explained.

The energy chief further stressed that electric cooperatives should buy from the peaking plants – although more expensive than the power generated by the hydropower complex – as this would be the only way to ensure stable supply.

Around 100 MW of power from fuel-fired facilities are available but are not being contracted by electric coops due to higher prices, according to Almendras.

It would not be sustainable for electric coops to rely solely on the Agus-Pulangi complex because production from the hydropower facilities has started to decline over the years, while demand has been going up, Almendras said.

The energy secretary said he would give the electric coops enough time to stringently follow the provisions of their power supply agreements, and to negotiate for more power if needed, before resorting to “drastic steps.”

The energy chief earlier said that the government has been drafting a department circular that would compel electric cooperatives and distribution utilities in Mindanao to source power from the peaking plants to avert rotating brownouts in the island.