Power shortage seen in 5 years if no investors come in Mindanao

Power shortage seen in 5 years if no investors come in Mindanao
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AN OFFICIAL from the Davao Light and Power Company (Davao Light) forecasted that there would be a power crisis in Mindanao in five years if there remained to be no power investors coming in.

In the maiden edition of Business Forum at Hukad in Ayala Malls Abreeza on July 5, 2024, Rodger Velasco, President & COO of Aboitiz Power Corp.'s Davao Light, said Mindanao will experience a shortage in power if there's no plan to put up plants in the next few years.

"Depending on how fast we grow, we look at five years' time we may expect power shortage in Mindanao... because it takes three years to build a power plant and that's building lang, what about permits (government permits), it will take months or years," he said.

It can be recalled that Mindanao experienced a power crisis in the summer of 2012, which crippled major industries.

Velasco, however, said when it comes to talks with possible investors, they have been doing exploratory talks for some time already, adding that they do not discriminate what investors could provide, as long as these are law-compliant.

"And they must also go through a bidding to protect our consumers," he said.

He also revealed that Davao Light cannot put up its own plant because of RA 9136 or EPIRA (Electric Power Industry Reform Act). 

"What we can do is to attract investors. What we can do is to contract with willing investors,” he said, adding that Mindanao really needs “solid baseload” power plants.

Thus, he said that Davao Light and the Davao City Chamber of Commerce are discussing intently how to drum up inviting investors for power in Mindanao.

Velasco said if there are more power plants supplying electricity to Mindanao the cost of power will be lowered because power rates are influenced by the law of supply and demand, where if the demand is high and the supply is low, prices are high.

According to the power situation outlook of the National Grid Corporation of the Philippines, as of July 6, Mindanao has 3,047 available generating capacity (MW), with system peak demand of 2,098 megawatts and an operating margin of 949 megawatts. CEA

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