DoE warns Mindanao against power shortage

MANILA, Philippines — The Department of Energy has warned anew of possible power supply shortages in Mindanao next year, as the required power reserve level in the island remained precariously low at only 100 megawatts during peak hours.

Energy Secretary Jose Rene D. Almendras admitted that the Mindanao power supply situation was “very challenging” given that the reserve margin continued to be below the minimum 21 percent.

This means that although the existing power supply can address the present demand, the Mindanao grid does not have sufficient reserves that can be tapped should a power plant or unit break down.

“We’re not happy with the reserve levels in Mindanao. We’re lucky that the hydropower facilities in Mindanao are doing well — there had been no major breakdowns. It’s ok, but it’s still not stable,” he added.

Almendras thus warned of possible power shortages next year if “we get really hot summers” which will consequently result in reduced water levels at the dams that power the hydropower facilities in Mindanao.

The DoE, he added, would be banking on the announcement by the Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa), that the country was entering the La Niña phase again, which will hopefully, help shore up water levels at the dams.

Currently, Mindanao sources more than half of its electricity requirements from hydropower plants, with the Agus-Pulangi complex providing over 700 MW.

Due to its heavy reliance on this particular source, Mindanao had been the most adversely affected by the prolonged drought in 2010 as the reduced water levels at the dams drastically cut power-generating capacities to less than 10 percent.

Almendras said the DoE has begun preparations to implement several measures in Mindanao to help avert a possible supply shortage, which was estimated to reach as much as 300 MW. This figure, however, is being reviewed and, if necessary, will be revised.

“We’re revising the estimates because we overestimated this year. We did not hit the peaks that we saw. Our estimates of a (300-MW shortage for 2011) were too aggressive. Last year, we wanted to be safe, so we estimated a peak demand of 7,900MW, but that did not happen,” Almendras said.

Among the measures that the DoE wanted to implement included the transfer of power barges 101 to 103 to Mindanao to help shore up capacity. Each of the power barge can generate 32 MW.

The energy chief said he was now asking the state-owned Power Sector Assets and Liabilities Management Corp. whether it would be more feasible to sell these power barges and then require the buyers to transfer the facilities to Mindanao.

The options, he added, were still being reviewed to determine which would be the best alternative.

The DoE is also expecting the 35-MW Iligan diesel power plant to be recommissioned in a few months’ time.

Add to that, the government is further “enticing” investors to put up the needed baseload facilities to help secure the power supply in Mindanao.

Aboitiz Power Corp. had announced plans of putting up a P25-billion, 300-MW coal-fired faclity in Davao, while Conal Holdings Corp., a subsidiary of the Alcantara-led Alsons Consolidated Resources Corp., would be building two coal-fired power plants in Sarangani and Zamboanga to provide a combined 300 MW in additional capacity.