With the oversupply of energy flooding Mindanao in the next few years, the next big challenge for electric cooperatives and distribution utilities now is to maximize their energy mix and ensure affordable power for their consumers.
“It is now all about achieving a balanced mix of their sources. Electric cooperatives and distribution utilities must now take advantage of the abundant supply and cheap hydro power but at the same time utilizing their coal power supply contracts,” said Romeo Montenegro, deputy executive director of the Mindanao Development Authority (MinDA).
“Power distributors must balance reliability, sustainability and most importantly, affordability of power,” according to Mr. Montenegro, who also heads the technical working group of the Mindanao Power Monitoring Committee (MPMC).
The Duterte administration has pushed for a “technology agnostic” approach on energy security – prioritizing affordable power no matter the technology, to sustain the country’s industrialization.
Although hydro power courtesy of the Agus-Pulangi complex remains to be the biggest and cheapest single source for power in the island, several coal power plants have come on line in the last two years and, combined, now accounts to around half of the supply.
At present, AboitizPower, San Miguel Energy, Filinvest and Saranggani Energy have completed their coal power plants and have started supplying energy into the grid. The flood of new capacity is causing an oversupply of power in Mindanao, an island that just last year suffered up to 8 hours of power curtailments daily in some areas.
However, Montenegro said that the oversupply must also be balanced well as some electric cooperatives have over-contracted. He encourages electric cooperatives to properly plan their demand forecast to better manage their supply.
‘Their ultimate concern must be the welfare of their consumers. What will give consumers the reliability and what will be cheapest,” he said.
Created in 2012 through Executive Order 81, MPMC is tasked to coordinate the efforts of the national, regional, and local governments and power industry stakeholders to improve Mindanao’s power industry.
SOURCE: Mindanao Development Authority