The Mindanao Development Authority (MinDA) bared that Mindanao is closely monitoring nearly 200 power projects with a combined potential of 2,500 megawatts (MW) as part of its efforts to achieve a balanced 50/50 energy mix of renewable and non-renewable sources by 2030.
Assistant Secretary Romeo Montenegro, Deputy Executive Director V (DED) of MinDA, said many of these projects are currently being pursued as purely private investments, particularly in renewable energy (RE), which is considered more viable since it reduces dependence on imported diesel and coal.
He also said that about half of the projects are already in the “committed” stage, which means financing and permits are being finalized, while the rest remain at the “indicative” stage.
“We are working hard to facilitate at least 1,000 MW in added renewable capacity by 2030 so that Mindanao can meet its energy mix target,” he explained.
Montenegro said, at the same time, the government is studying which projects could evolve into public-private partnerships (PPPs), especially in cases where local government units (LGUs) hold water rights needed for hydropower development.
He explained that in such arrangements, LGUs can enter joint ventures with private developers and local electric cooperatives—turning from mere consumers into investors.
Montenegro cited successful joint ventures, including energy projects in Basilan and other provinces, where LGUs partnered with private developers and electric cooperatives to secure both investment and a guaranteed market.
“Puwede silang mag joint venture para hindi lang offtaker or consumer lang si LGU, investor na rin siya because they are allowed by law to invest as well as part of the enterprise, and it can be done in many other areas, joint venture ni LGU, ni private sector, like in Basilan na may nagtayo ng biodiesel plant owner ng property ay si Basilan LGU at ibinibenta niya kay Basilan Electric Cooperative,” he said.
Montenegro stressed that capital requirements remain a major challenge, particularly for projects in underserved areas, and to bridge the financing gap, donor grants and concessional funding are being tapped to make ventures more attractive to the private sector.
“These are some combinations that we are looking at in terms of identifying in the menu of energy, saan dito ang potential na maging PPP approach because the challenge always to energy project is capital, and many of these are in areas that are not expected to pay for itself in the initial run in the components of subsidy and concessional financing,” he said.
“By combining the strengths of LGUs, private developers, and cooperatives, we can build sustainable partnerships that will secure Mindanao’s energy future,” Montenegro added.
