Mindanao power shortfall seen easing up with new capacity

MANILA, Philippines - Additional capacity is expected to come in starting today (Sept. 26) to the Mindanao grid to ease up the power supply shortfall of the province, Energy Secretary Carlos Jericho Petilla said.

Petilla said the additional power would be supplied by the Interim Mindanao Electricity Market (IMEM) which would commence commercial operations today (Sept. 26).

IMEM, he said, is also seen as a pilot test for Mindanao’s eventual transition to the Wholesale Electricity Spot Market (WESM) in Mindanao, once adequate power generation is established for the island-region.

Petilla said with the presence of the Mindanao spot market, power would no longer be a problem for the province in the near term.

“I am not really too much worried about Mindanao in the long-term because by 2015, especially in 2016, there will be enough power to the extent that there will be oversupply in the region,” Petilla said.

The DOE chief said IMEM aims to provide the platform for the electricity market in Mindanao and address the island’s supply shortfall.

 The electricity market is expected to draw in about 100 to 150 megawatts (MW) of power, with supply-deficient electric cooperatives likely to buy capacity requirements.

“IMEM is not here as a final institution with final rules.  It will react according to the needs of the electricity market rather than put out final procedures that cannot be changed,” Petilla said.

He added that IMEM is by far the most dynamic way of extracting uncontracted and available power capacities in Mindanao.

IMEM is designed to provide an immediate venue for transparent and efficient utilization of additional capacities to address Mindanao’s energy supply shortfall. This commercial electricity market would allow energy distributors to sell power supply from its embedded generators to areas with a supply deficit. 

All of the distribution utilities and other generation capacities connected to the Mindanao power system are mandated to participate in the IMEM. However, the market is also encouraging the participation of the voluntary load customers through load curtailment or synchronized self-generation.

“We are assured of sufficient supply two years from now, but in the meantime we welcome the upcoming operations of Mindanao’s own electricity market to ease up deficiency,” said Mindanao Development Authority chairperson Luwalhati Antonino.

Antonio said although load curtailment are expected in parts of Mindanao mainly due to scheduled preventive maintenance of some power plants, the entry of capacities in the IMEM would result to better power outlook.

Since last year, many areas in Mindanao such as Zamboanga City and General Santos City were affected with rotating brownouts of up to six- to eight hours.

“We will extract every possible source we can find, with the dispatch protocol made fully transparent to all players,” said Petilla, adding that no electricity market would operate without a transparency mechanism.