by Mike Baños
Cagayan de Oro City – The Mindanao Development Authority pressed its urgent call for energy stakeholders to proactively accelerate the targeted energy mix of 50/50 fossil/renewable energy mix in Mindanao by 2030.
In his keynote speech read by Director Olie B. Dagala during the opening of the Mindanao Clean Energy Forum 2024 held 12 September 2024 at Limketkai Luxe Hotel, MinDA Secretary Leo Tereso A. Magno stressed how the Mindanao Energy Plan, co-published by MinDA and the Department of Energy (DoE), has been a critical blueprint in guiding stakeholders toward a 50-50 energy mix.
With the theme “Revitalize: Fostering Energy Sustainability for a Resilient Community and Economy,” Magno said the forum “aptly reflects our shared commitment to ensuring that Mindanao remains resilient and attractive for ongoing economic activity.”
He recalled how two decades ago, rotating brownouts stifled Mindanao industries and hampered its economic growth as the rapid expansion of industries and population growth led to severe energy shortages.
With a capacity of 700 MW in 2016 and an additional 1,260 MW in 2018, Mindanao began to experience a power supply situation with a comfortable margin.
“This achievement was a testament to your commitment to ensuring a reliable energy supply. Today, Mindanao enjoys an excess of 600 to 800 megawatts,” Magno disclosed.
He further lauded the decreasing surplus as a sign of positive progress, reflecting Mindanao’s increasing contribution to the national grid through the Mindanao-Visayas Interconnection Project (MVIP) which not only supports other regions, but also signifies the island’s growing integration into the broader national energy framework.
However, in his presentation “Shaping Mindanao’s Energy Future: Key Findings from the Regional Power Summits”, MinDA Deputy Executive Director Asst. Sec. Romeo M. Montenegro said the reversal came at a price to consumers. From 55% RE/45% Fossil, the ratio has shifted to 33% RE/67% Fossil by 2017.
With generation rates making up 55% of the electric bill, electric coops and distribution utilities in Mindanao’s reliance on fossil (coal and diesel) resulted in higher electricity rates, currently the second highest in Southeast Asia.
Magno cited further the introduction of the Wholesale Electricity Spot Market (WESM) in Mindanao last year which significantly boosted investment interest and economic activity.
“In 2023 alone, Mindanao attracted investments worth 97.6 billion pesos, accounting for 15% of the total BOI-approved investments in the Philippines, a clear indication that our efforts in scaling up the energy sector are bearing fruit and driving economic growth.”
“As we pursue a stable energy supply, let us also commit to producing energy in a manner that does not compromise the environment for future generations. Our goal is to provide not only for today but to ensure that our children and their children can also enjoy the benefits of our efforts for clean energy,” Magno urged in his message.
In her presentation “Unlocking Investment and Partnerships for Renewable Energy”, Kristina Azela B. Diza, OIC-Director IV, Project Development and Facility Service, Public-Private Partnership Center, warned “We need to act swiftly to transition to Renewable Energy.”
She cited how 2023 was the warmest ten-year period on record, with a global average near-surface temperature at 1.45 degrees Celsius above the pre-industrial baseline. On an average day in 2023, nearly one third of the global ocean was gripped by a marine heatwave, harming vital eco and food systems. Towards the end of 2023, over 90 percent of the ocean had experienced heatwave conditions at some point during the year.
To limit global warming to 1.5 degrees Celsius, annual global Greenhouse Gas (GHG) emissions must peak by 2025 and be reduced by 45 percent in 2030. Developed countries must decarbonize by 2030, and developing and least developed countries before 2050.
The Marcos administration envisions “a nation powered by clean energy and thriving communities benefiting from stable, reliable, and accessible energy systems.” Achieving this vision will stabilize the power sector and position Mindanao as a prime destination for investments, fostering peace and progress that benefit everyone, Magno stressed further.
With the goal of leading the Philippines’ energy transition, Montenegro detailed how the Mindanao Power Agenda envisions accelerating the country’s 2040 target of 50-50 RE-Fossil share by ten years to 2030 in Mindanao.
This target presupposes 100% electrification in the island by 2028, the addition of 1,500MW capacity by 2030, the full rehabilitation of the Agus-Pulangi Hydroelectric Complex, the transition of the National Power Corporation’s Small Power Utilities Group (SPUG) with 100% RE by 2030, and linking RE to Mindanao’s Agri Value Chain.
Resolutions and Recommendations collated from the Mindanao regional power summits presented by Montenegro detail further ways forward with which these lofty goals can be fast tracked.
Renewable Energy Promotion and Acceleration (National coordination for Renewable Energy projects, LGU integration of RE in Local Development Plans, Support for Hydrogen as future energy source); Electricity Distribution and Consumer Rights (Balancing mechanism for Renewable Energy costs, Open franchising for Distribution Utilities, Strengthen policies promoting consumer choice, Empowerment of power consumer councils); Agus-Pulangi Hydro Power Complex (Accelerating Full Scale Rehabilitation, Keeping assets under state ownership), Energy Storage and Modernization (Energy Storage Project (ESP) Development, Modernizing Power Systems and Hybrid Grids); LGU Power Advisory Councils (Establishment of City/Provincial Power Advisory Development Councils); Public-Private Partnerships (Closer collaboration between government and private sector for energy infrastructure projects; and Research & Development for Innovative Technologies (Promote and encouraging R&D in energy innovation).
The Mindanao Clean Energy Forum is the annual flagship event hosted by the Mindanao Renewable Energy Acceleration and Coordination Hub (Mindanao REACH) which aims to Revitalize the efforts in fostering energy sustainability for a resilient community and economy, particularly in the agricultural sector and local government units (LGUs) in Mindanao.
Collaborating with the project conveners, the Peace and Equity Foundation (PEF), Mindanao Development Authority (MinDA)(MinDA), and Ateneo de Davao University ADDU Create – Center for Renewable Energy and Appropriate Technologies-Mindanao Renewable Energy R&D Center (AdDU-CREATE-MREC), in partnership with the City Government of Cagayan de Oro and the University of Science and Technology of Southern Philippines(USTP), are laying the groundwork for crucial conversations and innovative partnerships.
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