ZAMBOANGA CITY, Philippines – Power users and the economy in general, now suffering six to eight hours of rotating blackouts due to the critical power situation in Mindanao, might experience more and longer power outages beginning the third quarter of the year when the transition power supply agreement of the Zamboanga City Electric Cooperative (Zamcelco) with the National Power Corp. (Napocor) expires in August.
According to Napocor sources, Zamcelco’s power supply agreement with the state-run facility might no longer be renewed as many Napocor facilities in Mindanao have already been privatized.
The remaining capacity of Napocor’s power plants in Mindanao will first be allocated to distribution utilities with existing supply contracts with Napocor, before it sells power to other distribution utilities.
In effect, beginning August, Zamcelco will only be able to buy power from Napocor after all the distribution utilities with existing power supply agreements with Napocor have been served, and if Napocor has extra capacity to sell. Napocor is currently the sole power supplier of Zamcelco.
Zamboanga City is among the worst hit in the Mindanao power crisis. The estimated power deficiency in the Mindanao grid this month could reach 144 megawatts (MW) as an offshoot of the protracted dry spell brought about by the El Niño weather phenomenon.
The sharp decrease in Lake Lanao’s water level drastically brought down Napocor’s hydropower capabilities by as much as 80 percent. And there are fears that the amount of rainfall in the coming rainy season would not be enough to enable Napocor to operate its hydropower facilities at normal capacities.
But all is not lost for Zamboanga – power-wise. Zamcelco, after receiving no offer or proposal from other power utilities, entered into a power supply agreement with iN2Power last March 29.
Under the agreement, iN2Power, a duly registered wholesale aggregator, will sell an aggregate capacity of 30 MW to Zamcelco for 12 months by installing 20 units of 1.64-MW, diesel-fueled generating sets within the cooperative’s franchise area.
According to iN2Power president Alberto Guanzon, the 30-MW emergency capacity is enough to minimize, if not totally end, the blackouts in Zamboanga City.
To ensure uninterrupted supply of electricity to Zamcelco, iN2Power is providing four additional units of 1.64-MW backup generators.
“Should we get the Energy Regulatory Commission’s (ERC) approval on the (power supply agreement) within the month or early June, we should be able to bring Zamboanga City’s power situation back to normal by the latter part of July or early August.” Guanzon said.
The agreement, after a public hearing conducted by the ERC in Zamboanga City, is now on its final evaluation stage by the energy regulatory body.