The Department of Energy (DOE) continues to improve and push for short-term and long-term measures to address the current power situation in Mindanao.
One of the options for Mindanao that the government offers is the resumption of an enhanced Interim Mindanao Electricity Market (IMEM), allowing for re-nomination three (3) hours before the actual trading interval. This gives ECs the flexibility to adjust their IMEM exposure by allowing them to factor in the actual available output of their power providers, and the demand requirements for the particular trading hour. This is an improvement from the previous day-ahead market for the management of all available power supply in the region.
Last month, Energy Secretary Carlos Jericho L. Petilla together with the energy agencies met with the Presidents and General Managers of Mindanao electric cooperatives (ECs) to clarify and resolve concerns on the operations of the IMEM. As a result of the meeting, the DOE recently issued Department Circular DC2014-05-0010, which incorporates the agreements made with the stakeholders to implement demand-side bidding with ECs being the ones who will set the price of power and minimize the price volatility for customers.
Trial operations of the enhanced IMEM are targeted within the month. It may be recalled that the IMEM has been suspended last February following the power system collapse in the region. Other activities to resolve operational and commercial issues and concerns are likewise currently being undertaken.
Likewise, the Mindanao Interruptible Load Program (ILP) is still in effect. ILP serves as an option for Distribution Utilities like Davao Light and Power Company and electric cooperatives to ask their big load customers to serve their own power needs by using their own generator sets in the event that all available mechanisms implemented to ensure supply are not enough to cover the demand for electricity.
In retrospect, to facilitate participation in the IMEM and ILP, the DOE and ERC have issued Department Circular 2014-03-0006 and ERC Resolution No. 4 of 2014, allowing the power generators to operate even if their Certificate of Compliances (CoCs) are still in process.
In addition, the Modular Genset Program (MGP), offered as early as July 2013, is an on-going measure. It remains to be available on voluntary basis and gives options for electric power providers and consumers to manage their requirements. According to the National Electrification Administration (NEA), which has been tasked to implement the program, over P100 million out of the P4 Billion fund sourced from Malampaya Funds have been currently provided to Mindanao ECs who willingly availed of the program.
Alongside these measures, the DOE continues to encourage the entry of new power investments, as a long-term solution for the Mindanao power situation. Through the DOE’s aggressive promotion of the country’s energy portfolio to power developers since 2010, power projects including the 300 megawatts (MW) Coal-Fired Therma South Energy Project and the 200 MW Southern Mindanao Coal-Fired in Sarangani have started construction and are expected to come online in 2015. Meanwhile, the 405 MW Coal-Fired Power Plant of FDC Utilities Inc. in Misamis Oriental is targeted to come online by September 2016.
Moreover, the Mindanao supply situation is likely to improvewith the partial availability of the 100 MW out of the 210 MW of the STEAG Coal Fired Power Plant at 7pm last night (07 May 2014).
Even with STEAG augmenting the supply in Mindanao, the DOE appeals to the public to conserve electricity and water to be able to sustain the water elevation needed in operating the hydropower plants in the region.
With all these measures, the DOE ensures that the government is one with all the people in aiming for the stabilization of the power situation in Mindanao that will not only result to supply reliability but will also take into consideration consumer acceptability.