Mindanao power threat all too real, says NGCP

MANILA, Philippines–Despite efforts to boost power capacity in Mindanao, the National Grid Corp. of the Philippines (NGCP) on Friday maintained that there is an “acute shortage” of electricity on the island, resulting in brownouts since the start of the year.

In a statement, NGCP spokesperson Cynthia P. Alabanza stressed that at the moment the power facilities of the state-run National Power Corp. (Napocor) and those owned and operated by private power generation firms could not meet the demand of customers in Mindanao.

“For the Mindanao grid, there is clearly a deficiency, considering that the published reserves are ‘gross reserves’ that do not even include the required regulating, contingency and dispatchable reserves. These are reserves that are utilized by the grid to regulate frequency and voltage, and to avoid a complete grid shutdown in the event of an emergency power plant shutdown,” Alabanza said in a statement. “It is possible that the data for rated capacities versus actual available capacities could have been misread or misinterpreted by certain quarters. Our data doesn’t lie. We stand by the data (we have).”

NGCP also stressed that the brownouts are not due to any transmission-related concerns and certainly not due to the refusal of NGCP to fully utilize capacities of hydropower plants.

The country’s transmission operator categorically rejected allegations that it has been withholding excess power to simulate a power shortage. This was in response to recent reports that NGCP allegedly has not fully disclosed the real power situation in Mindanao, and that the power capacities from hydroelectric plants have not been fully utilized by NGCP, which serves as the grid system operator.

“It does not benefit us to withhold supply as NGCP cannot have a direct or indirect stake or interest in the generation and distribution businesses,” Alabanza added.

She pointed out that the Electric Power Industry Reform Act (Epira) specifically prohibits NGCP from having any interest in generation and distribution. Its mandate is limited to the maintenance, expansion and improvement of the nationwide transmission backbone.

“The generation and the distribution of electricity are functions that are legally and physically beyond NGCP’s control,” Alabanza said, adding that NGCP does not, by itself, determine which franchise area or distribution utility gets what portion of the available supply.

“We want to do our part in resolving the Mindanao power problem. NGCP is ready to assist in whatever manner possible in our official capacity as power transmission service provider and grid operator,” she further said.

Energy Undersecretary Josefina Patricia M. Asirit earlier announced that the Department of Energy would issue a circular next week that would in effect free up capacity that may be channeled to critical areas on the island.