The government plans to shift 90 percent of power in Mindanao to renewable energy (RE).
Secretary Carlos Dominguez of the Department of Finance said astudy on this by the Asian Development Bank (ADB) will be released by the third quarter.
“We have a very unique situation in Mindanao where we have sufficient power and yet at this point in time, we have a large hydroelectric system that has not been maintained over the years and is producing well below its capacity. Together with DOE (Department of Energy), we have developed a plan to first improve the generating capacity of the Agus river system,” Dominguez said during an online briefing yesterday by the Philippine Embassy in Washington DC.
Dominguez said a fund will be set up to acquire all coal-powered plants in Mindanao and shut them down as the energy delivery of the Agus river hydroelectric system increases.
“This will require long-term and low cost funds. We’re working together with the ADB to study the actual viability of this concept with the idea that Mindanao will be totally powered by or at least 90 percent powered by RE sources. You also have to remember Saranggani province in Mindanao has the highest number of sunlight days in the Philippines,” Dominguez added.
The 982 megawatts (MW) Agus-Pulangi hydro power plant complex is among the remaining government-owned power assets yet to be privatized. The National Power Corp. earlier said due to its age, the facility has a dependable capacity of only 700 MW.
Last December, the DOE designated members of the national technical working group (TWG) 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.
In the same event, DOE Secretary Alfonso Cusi urged American firms to invest in the country’s geothermal sector which has been recently allowed for full foreign ownership.
“It is unfortunatet the US seems to have forgotten us, so I hope our American friends in the business community will again take a look at our new initiatives that aim to make the Philippines rife with many investment opportunities,” Cusi said.
“On the renewables sector, we are inviting private sector to develop the geothermal, that’s an area we would really like to tap, develop, that’s the kind of power that we need and we’d like to see investors from the US doing 100 percent participation in geothermal,” Cusi added.
The country’s total geothermal capacity is at 1,928 MW, the third biggest globally, trailing behind Indonesia and the US. – Jed Macapagal
