Mindanao seen more reliant on coal-based energy in 2017

Business World Online
Posted on August 17, 2015 11:09:00 PM
By Carmencita A. Carillo, Correspondent

DAVAO CITY -- Mindanao’s reliance on coal-based energy is expected to more than triple to 49% by 2017 from only 15% currently as three new coal-fired plants start operations.

“The share of fossil fuels in the energy mix is rising from a mix of 45% fossil and 55% renewable energy (RE) in 2015 to 67% fossil and only 33% renewable energy-sourced power by 2017,” said Romeo M. Montenegro, director of investment promotions and public affairs of the Mindanao Development Authority (MinDA).

The other fossil sources are diesel-powered generation plants.

Therma South, Inc., a subsidiary of Aboitiz Power Corp. (AboitizPower) is close to completing the testing program for its initial 150-megawatt (MW) unit, of which 120 MW is fed to the Mindanao grid for commercial distribution and the remaining 30 MW set aside for in-house operations.

“The plant has to be tested under several stress conditions to ensure it will be able to function efficiently once commercial operations start,” said AboitizPower First Vice-President Manuel M. Orig.

Full commercial operation is scheduled to start by September while the second 150-MW unit is planned to go online by early 2016.

Meanwhile, the Alacantara-led Sarangani Energy Corp.’s first 105-MW unit of its 210-MW coal-fired power plant in Maasim, Sarangani will be commissioned by October and commercial operation targeted within the first quarter of 2016.

Another coal-fired project that is expected to be operational next year is San Miguel Consolidated Power Corp.’s 300-MW plant in Malita town, currently in Davao del Sur. It will become the capital of the new Davao Occidental province by next year.

Other ongoing fossil fuel projects are the 552-MW coal-fired plant being built by GNPower Kauswagan Ltd. Co. (GNPK) in Kauswagan, Lanao del Norte and Phase 1 (270 MW) of Filinvest Development Corp.’s 405-MW thermal power plant at the Phividec Industrial Estate in Misamis Oriental.

GNPK is a joint venture between Ayala Corp.’s AC Energy Holdings, Inc. and Power Partners Ltd. Co.

MinDA projects Mindanao’s power requirement at 500 MW of new capacity by 2016, another 500 MW by 2020, and 1,600 MW by 2030.

As of yesterday, available supply in the Mindanao grid was short by 29 MW against 1,388-MW peak demand, based on the National Grid Corporation of the Philippines Web site.

Mr. Montenegro said while the committed fossil fuel projects will give the southern island more than enough power after tight supply conditions this year, the goal of having a balanced fossil-RE mix remains in place.

“The strategy is to keep up with the increasing number of fossil-based power sources by increasing the RE projects in Mindanao,” he said.

Of the more than 200 RE projects proposed in Mindanao with a potential capacity of 2,998MW by 2020, two are already under construction.

One is Hedcor, Inc.’s 68.8-MW Manolo Fortich Hydroelectric Power Plant project in Bukidnon consisting of two cascading plants with capacities of 43.4 MW and 25.4 MW.

Hedcor, an AboitizPower subsidiary, is investing P12.5 billion in the venture.

Euro Power (Asia) Holdings, Inc., a subsidiary of Indophil Asia Equities, Inc., also broke ground in early July for its 2.4-MW mini hydroelectric power plant in New Bataan, Compostela Valley. The project will cost P384 million.

MinDA is also urging power distributors in Mindanao, mostly electric cooperatives, to pursue embedded RE projects, tapping potential hydro and biomass sources. source