The Mindanao Development Authority (MinDA) has expressed concern the privatization of the 982 megawatts (MW) Agus-Pulangi hydro power plant complex could lead to higher energy rates.
“MinDA’s position is against the privatization of Agus-Pulangi hydroelectric complex, which is deemed best left in the hands of the government but defining its role in an era of market competition. We need these assets to not just tame future supply volatilities but also continue fulfilling its obligation to serve especially the marginalized areas,” said Emmanuel Piñol, MinDAsecretary, in a statement.
Piñol cited a report from the Department of Energy that said the Mindanao Grid hit a peak demand of 1,928 MW with an available capacity of 2,780 MW leaving an excess supply of 852 MW last June 2.
Piñol said energy is a crucial in the overall socio-economic development of the island and its competitive power rates and stable supply will help support its economic recovery from the impact of the pandemic and will ensure it can meet expected rise in demand when industries return to pre-COVID operational levels.
The Agus-Pulangi hydro power plant complex is one of the remaining government-owned power assets yet to be privatized. The National Power Corp. said due to its age, the facility currently has a dependable capacity of only 700 MW.
Last year, the DOE designated members of the national technical working group that will push for the facility’s privatization as well as other power related issues in the Bangsamoro Region.
The TWG will provide policy recommendations for the effective implementation of the Bangsamoro Organic Law in relation to the privatization of the Agus-Pulangi hydro complex and other energy related issues.
As of end-2020, Mindanao’s total on-grid installed capacity is at 4,504.9 MW, almost 41 percent of which or 1,837 MW are from coal-fired power plants. – Jed Macapagal
