AboitizPower utility sees 9% increase in power demand in Davao areas

Posted on December 02, 2016
http://www.bworldonline.com/content.php?section=Corporate&title=aboitizpower-utility-sees-9%-increase-in-power-demand-in-davao-areas&id=137194

DAVAO CITY -- Aboitiz Power Corp.’s Davao Light and Power Co. (DLPC) is expecting a 9% rise in electricity demand in its franchise areas to 405 megawatts (MW) next year from the current 370 MW due to the increase in residential and commercial developments.

Rodger S. Velasco, DLPC vice-president for engineering, said the company has already contracted about 450 MW of supply, which would mean a 45-MW buffer, enough even for the summer months when the hydroelectric power sources, the Agus and Pulangi complexes, reduce capacity.

“Historically, production of NPC-PSALM (National Power Corp. -- Power Sector Assets and Liabilities Management Corp.) during the worst drought is half of its capacity and that (at present) supplies about 160 megawatts (to DLPC),” explained Mr. Velasco at a media forum Wednesday.

“We just assumed a reduction of about 20% to 30% from our hydro supply and that would be about 45 MW reduction from NPC-PSALM and another 10 MW reduction from our sister company Hedcor (Inc.). That is why we are exceeding our supply because those excess capacities that we contract are supposed to replace those seasonal reduction of supply,” Mr. Velasco added.

DLPC’s franchise areas include Davao City, Panabo City and three other towns in Davao del Norte province.

While there is an expected power oversupply in Mindanao by next year, Mr. Velasco said there is also a projected growth of at least 5% to 6% in overall energy sales.

“Business is booming and we’re prepared for that,” he said.”

Based on the projection of the Mindanao Power Monitoring Committee, Mindanao will have about 1,000 MW in excess supply by next year, enough for the government to possibly introduce a wholesale spot electricity market, which would allow distributors and major consumers to buy power on a daily basis. -- Carmelito Q. Francisco and Maya M. Padillo