Davao Light and Power company (Davao Light) President and Chief Operating Officer Rodger Velasco said on Friday that power distributors perceived that Mindanao will have a power shortage in the next five years or earlier depending on how fast the island grows.
“That is our forecast for now but wala kasi kaming complete data for Mindanao. That is why we need the Department of Energy (DOE), together with the National Grid Corporation of the Philippines (NGCP), to see what is the outlook for the five-year horizon for Mindanao. DOE is the one looking at the macro level and attracting investors to come in for the supply of energy. NGCP and the DOE are the macro planners for Mindanao and the Philippines,” Velasco said during the Business Forum @ Hukad at Ayala Malls Abreeza.
Velasco said attracting investors to put up power plants is vital in addressing the forecasted power shortage.
“If there is no plan to put up now or the next two years we may expect this (power shortage). It’s something we in the energy industry are discussing intently and how to drum up in inviting investors for power in Mindanao because it takes five years to build a power plant,” he said.
Velasco said there must be a plan because the Wholesale Electricity Spot Market (WESM) will only function efficiently if there are several suppliers.
“WESM is a law of supply and demand. If there is so many supply, prices will decrease and if there’s so many demand and lower supply, prices will go up,” he said.
Velasco said what Davao Light can do is to drum up together with DOE and NGCP in attracting investors of power plants may it base load plants or renewable energy plants.
Davao Light cannot put up its own plant as it is bound under the Electric Power Industry Reform Act (EPIRA) of 2001 or RA No. 9136
“As Davao Light by law we cannot put up our plant based on RA 1936 EPIRA but what we can do is to attract investors. To contract with investors and work with the key players and electric cooperatives in Mindanao, distribution that really there is a shortage coming. Together we can attract investors to put up their plants such as base load plants, and renewable energy plants, so that we can support Mindanao,” Velasco said.
Velasco also said that, although, the moratorium on coal plants is still in effect today, however, there are power plants that have already gotten the permits to proceed to construct power plants.
It can be recalled that former president Rodrigo Duterte placed a moratorium on new coal projects in 2020.
“Hopefully, there are power sector industries in Mindanao that have those permits so it can help bring up to the level of comfortable supply so that we can serve our needed demand,” Velasco said.
