DOE eyes over 4,500 MW boost for Mindanao power supply

Negros power ensures stable power supply in May polls
SunStar File Photo
Published on: 

THE Department of Energy (DOE) is preparing a massive expansion of Mindanao’s power generation capacity, with 90.26 percent of the combined capacity of 67 committed and indicative projects identified as renewable energy (RE) as the agency works to add more than 4,500 megawatts (MW) of potential generation capacity to the island grid through 2031.

For 2026 to 2031, Mindanao has 30 committed power projects with a combined capacity of 1,323.915 MW, while another 37 indicative projects account for 3,256.98 MW, according to Dr. Erick George D. Uy, OIC-Division Chief of the Energy Utilization Management Division of the DOE Mindanao Field Office.

Combined, the projects represent 4,580.895 MW of additional potential generation capacity.

The DOE said the project pipeline forms part of efforts to expand generation capacity as electricity demand increases and to maintain sufficient supply and operating reserves in the Mindanao Grid.

The 90.26 percent RE share applies to the combined capacity of the committed and indicative projects. The remaining capacity comes from other generation technologies identified in the DOE's project pipeline.

Uy said the agency is prioritizing renewable energy development as the power sector expands.

The DOE's generation expansion program comes after Mindanao experienced periods of tight supply and grid alerts linked to unexpected outages of generating units.

As of September 20, Mindanao had an average available generation capacity of approximately 3,226 MW, compared with average electricity demand of 2,451 MW, resulting in an average gross reserve of about 755 M B  W, Uy said.

He said Mindanao returned to normal grid operating conditions on September 13.

“Mindanao has returned to normal grid operating conditions since 13 September 2026, with available generation capacity remaining sufficient to meet electricity demand and maintain an operating reserve,” he said at Wednesday’s Habi at Kape at Ayala, Abreeza Malls on September 23, 2026.

As of 20 September 2026, Mindanao has an average available generation capacity of approximately 3,226 MW, against an average electricity demand of 2,451 MW, resulting in an average gross reserve of about 755 MW.

This indicates that, under normal operating conditions, the Mindanao Grid has sufficient generation capacity to serve prevailing demand while maintaining reserve capacity.

Based on the current outlook, the Mindanao Grid is expected to experience no Yellow or Red Alerts for the remainder of 2026, provided that normal grid operating conditions are maintained and there are no significant unplanned outages, particularly involving large baseload generation.

Grid alerts tied to unplanned outages

Uy said Yellow and Red Alerts are primarily indicators of the available operating reserve and should not automatically be interpreted as power interruptions.

A Yellow Alert occurs when the operating reserve falls below the required level, although available generation may still be sufficient to meet prevailing demand.

A Red Alert occurs when available generation is insufficient to meet both electricity demand and the required operating reserve.

During a Red Alert, system operators may implement measures such as Manual Load Dropping to maintain grid stability.

The DOE said recent Yellow and Red Alerts in Mindanao were associated with unforeseen events, particularly forced or unplanned outages of generating units.

The unexpected shutdown of a large generating unit can significantly reduce available generation capacity and operating reserves, particularly during periods of high demand.

The DOE therefore continues to monitor generation projects and transmission facilities as new capacity is developed.

30 committed, 37 indicative projects

Of the 67 projects in the 2026-2031 pipeline, the 30 committed projects account for 1,323.915 MW.

The 37 indicative projects represent a further 3,256.98 MW.

The distinction between committed and indicative projects reflects different stages of development. Indicative projects remain potential additions and still have to progress through the necessary development, regulatory, financing, construction and grid-connection requirements before they can contribute electricity to the system.

The combined pipeline of 4,580.895 MW is therefore potential additional capacity rather than capacity that will immediately become available to consumers.

The DOE is implementing measures to facilitate the development and completion of projects already in the pipeline.

DOE fast-tracks energy projects

One of the measures is the issuance of Certificates of Energy Projects of National Significance (CEPNS) to qualified projects.

The certification is intended to facilitate and expedite the processing and approval of permits, clearances and other requirements from concerned government agencies and authorities.

The DOE has also mobilized the Ad Hoc Task Force on Sona Directives on Energy Supply and Project Monitoring, or Task Force 200, to monitor priority energy projects and address concerns that could affect their implementation, completion and commissioning.

Another mechanism is the Ad Hoc Committee on Transmission Projects, which assists the National Grid Corporation of the Philippines (NGCP) in addressing issues that could delay the construction and completion of transmission facilities.

The committee also facilitates the resolution of transmission-related concerns raised by power project proponents.

The DOE has emphasized that transmission development must proceed alongside generation development to ensure that new power projects can be connected to and deliver electricity through the grid.

Coal moratorium and renewable projects

Uy said the government's greenfield coal moratorium applies specifically to new coal projects.

The policy does not cover existing coal-fired power plants that were already operating, while projects that had secured the necessary approvals before the moratorium are treated separately.

“Correct. Existing plants and prior approvals are unaffected by the moratorium. For instance, the Therma South generating facility in Sirawan pre-dates the policy, so its operations remain unaffected.”

The DOE said renewable energy projects are being prioritized as part of the country's continuing effort to diversify the power mix.

For Mindanao, the 90.26 percent renewable-energy share in the combined 2026-2031 project pipeline includes projects being developed across different areas of the island.

The project pipeline is expected to increase the amount of generation capacity available to support electricity requirements as demand grows.

Investor interest and energy availability

Uy also cited the availability of power supply as one of the factors contributing to investor interest in Mindanao.

“We see strong interest from investors, especially now that Mindanao is booming. A primary factor for this is the availability and stability of our power supply—particularly when compared to the Visayas grid. As mentioned earlier, since mid-September, we have fully returned to normal operations.”

Mindanao's geographical characteristics may also contribute to its investment environment, particularly its relatively lower exposure to major typhoons compared with other parts of the Philippines.

Uy said the DOE has also operationalized its Task Force on Energy Resiliency to prepare for emergencies and natural calamities.

“Yes, that is usually the case. Additionally, to manage upcoming emergencies and natural calamities, we have operationalized the Task Force on Energy Resiliency. Electric cooperatives (ECs) from unhit regions will assist ECs affected by disasters, expediting the restoration of power within their respective franchise areas.”

Under the arrangement, electric cooperatives from areas not affected by disasters can provide assistance to cooperatives whose franchise areas suffer damage, with the objective of accelerating restoration of electricity service.

Energy efficiency also part of supply strategy

Beyond generation expansion, the DOE is also promoting energy efficiency and conservation to manage electricity consumption.

Republic Act No. 11285, or the Energy Efficiency and Conservation Act, establishes energy efficiency and conservation as a national policy and provides mechanisms and incentives for qualified energy efficiency and conservation projects.

The DOE encourages government agencies, businesses, industries and other energy-consuming sectors to implement energy efficiency measures.

The department also promotes the use of Energy Service Companies (Escos), which provide technical, engineering and multi-technology services for energy efficiency projects.

The framework governing the administration, classification and certification of Escos is provided under Department Circular No. DC2020-09-0018.

The DOE also implements the Philippine Energy Labelling Program (PELP), which provides consumers with information on the energy performance of covered products.

Current PELP coverage includes air conditioners, lighting products, refrigerating appliances, clothes washing machines, television sets, electric fans and display monitors.

The program works alongside Minimum Energy Performance Standards (MEPS), which set prescribed efficiency requirements for covered energy-consuming products entering the Philippine market.

The DOE established the PELP guidelines under Department Circular No. DC2020-06-0015, covering importers, manufacturers, distributors and dealers of electrical appliances and other energy-consuming products.

The department is also developing technical requirements and a Code of Practice for energy labelling of additional products, including microwave ovens, electric kettles, instantaneous water heaters, electric irons and cooking fume extractors.

For electricity rates, Uy said concerns over prices fall under the jurisdiction of the Energy Regulatory Commission (ERC), which is a separate quasi-judicial body from the DOE.

He said the ERC is the appropriate agency to address concerns involving electricity pricing. DEF

SunStar Publishing Inc.
www.sunstar.com.ph