THE Mindanao Development Authority (MinDA) said on Thursday, February 7, that Mindanao’s hydropower plant projects are most likely to proceed once the Wholesale Electricity Spot Market (WESM) will be established in the island region.
MinDA Assistant Secretary Romeo Montenegro said in a virtual press conference the WESM will provide priority dispatch for the produced energy since existing electric cooperatives in Mindanao are already fully contracted.
Montenegro explained that hydropower plants have no market in existing electric cooperatives, thus the need for a WESM in Mindanao.
“If there is a wholesale spot market operating in Mindanao, there is a priority dispatch in renewable energy and renewable energy. So kahit wala silang kontrata with any electric cooperative but there is a market, sila ang unang i-dispatch, so magamit gihapon sila (Even if they do not have a contract with any electric cooperative, they will still be utilized and dispatched first),” Montenegro said during a virtual press conference.
The proposed hydropower plants will produce 20, 15, and 10 megawatts separately but target date for these constructions, including the WESM, was not specified.
Meanwhile, proposals for the two major hydroelectricity power plant projects in Mindanao are still being reviewed by the Department of Energy.
The Pulangi V, a 300-megawatt major hydroelectricity power plant project in Maramag, Bukidnon, will require construction of a dam that may affect indigenous peoples living in the area.
“It will entail having to deal with several areas that are already inhabited by several indigenous communities and people,” Montenegro said.
On the other hand, the 250-megawatt Agus III hydropower plant is part of the Agus complex that includes Agus I, II, IV, V, VI, and VII, which are interlocked together. According to Montenegro, routine maintenance of one hydropower plant asset will require the shutdown of all assets.
This strategy is currently possible since the Agus complex is state-owned by the Power Sector Assets and Liabilities Management Corporation (Psalm), but the Agus complex is currently undergoing privatization of ownership.
“Kung naay (If there are) private entity owning any of the assets, dili pwede na imong pahinayon sa taas, hinay na pud karon ang dagan sa tubig padulong sa privately-owned na power plant (we cannot hinder the flow of the water supply in the privately-owned plant),” Montenegro said.
According to Montenegro, the construction of the two hydropower projects is facing the said possible implications, thus its proposal is still being reviewed.
“These two projects will be hurdling or dealing with certain challenges. Both are still being reviewed by the Department of Energy because of the implications of the project later on once pursued,” Montenegro said.
Both the Agus III and Pungali IV are eyed to be funded under a China loan agreement.