WITH the arrival of Japanese investors, Mindanao Development Authority (MinDa) assistant secretary Romeo Montenegro is hopeful Japanese investors in Agusan will expand to other areas in Mindanao.
Three hydropower projects were already started by Japanese investors in Agusan and increase in the renewable energy contribution instead of fossil fuels is expected.
The assistant secretary said the broad category of power generation is one of the things the Japanese investors are currently interested in.
In a press conference at Habi at Kape in Abreeza last Wednesday, Montenegro said that MinDa is currently working on a project which targets to bring back the 50-50 energy mix in Mindanao by 2030.
He said as of this year, Mindanao’s energy mix is at 70-30, favoring fossil fuel and with only 30 percent left for renewable energy as Mindanao’s source of electricity.
“MinDa is implementing the Mindanao power development program, while we continue to provide support and facilitate investments in fossil-based technology: diesel, power plants, coal, geothermal, we provide support more proactively on renewable energy projects in line with our target to bring back the 50-50 energy mix in Mindanao by 2030,” said Montenegro.
He added this is the exact opposite of the electrical situation in Mindanao where main source of electricity is from hydropower plants.
With regard to the Department of Energy’s target to implement Wholesale Electricity Spot Market (WESM) in the island-region effective June this year, Montenegro said success of such implementation would vary on whether or not the electric cooperatives are technically and financially able.
Seventy percent of the electricity in Luzon is handled by a single electric company which is Manila Electric Company while in Mindanao, there are 33 electrical cooperatives and distribution units.
“Therefore the electricity market in Mindanao will have to take that into account. And the preparedness, readiness and capacity, as well as the availability of sophisticated hardware by electric cooperatives will spell the difference as to whether or not they are ready to transition into a market-operated regime in Mindanao,” Montenegro said.
As per the Energy Regulatory Commission, The WESM “is the market where trading of electricity will be made. It shall be governed by the Philippine Electricity Market Board (PEM Board). The PEM Board shall provide the policies and guidelines of the WESM contained in the Implementing Rules And Regulations of the Act, WESM Rules, and such other relevant laws, rules and regulations.”
Implementation of WESM is under the Republic Act 9136, or the Electric Power Industry Reform Act of 2001.
