DOE sees rising power demand for Mindanao from 2021 to 2030

By Lenie Lectura – February 15, 2017

from Business Mirror

The Department of Energy (DOE) on Wednesday said Mindanao would need a total of 3,650 megawatts (MW) of additional power-generating capacity by 2021 to 2030.

Based on the agency’s latest data on demand-supply outlook, 2,100 MW of the needed capacity was identified as base-load, 1,500 MW of capacity from mid-merit, and 50 MW from peaking plants.

Baseload power plants are those that run 24/7, while mid-merit plants run on long hours, but not on a 24/7 basis. Peaking plants, on the other hand, run only when there is high demand, particularly during peak hours.

The data was based on a “high GDP scenario” that includes “8 percent GDP and 25 percent reserve requirement.”

Mindanao’s total installed capacity currently stands at 3,162 MW, but dependable capacity is at 2,702 MW only.

Coal still accounts for 1,070 MW of installed capacity, diesel at 828 MW, hydro at 1,061 MW, geothermal at 108 MW, biomass at 36 MW and solar at 59 MW. In terms of dependable capacity, 959 MW is coal, diesel 749 MW; geothermal 104 MW; hydro 837 MW; biomass 10MW and solar 43 MW.

Its highest peak demand was recorded at 1,653 MW on December 1, 2016. The same data showed that a total of 1,267.9 MW of committed capacity.

The data was presented during a public consultation in Mindanao in preparation for the implementation of the Wholesale Electricity Spot Market (WESM) operation in June.

Established under the Electric Power Industry Reform Act of 2001, WESM serves as the country’s electricity trading market.

With an oversupply of power in Mindanao, a power spot market will provide a venue for efficient scheduling, dispatch and settlement of energy withdrawal and injections in the Mindanao grid.

“Mindanao has experienced excess generation supply starting first half of 2016, which increased even further with the entry of other large generation capacities in the latter part of 2016, and shall increase even further in 2017,” according to the DOE.

A power spot market in Mindanao, explained the agency, will ensure a reliable and stable supply.