Aboitiz to shell out P35B for new power in Mindanao
MANILA, Philippines - As part of efforts to address the power shortage in Mindanao, the Cebu-based Aboitiz group will spend P35 billion to boost its generating capacity in the region over the next three years.
Aboitiz Power Corp. president and CEO Erramon Aboitiz said the company will add 354 megawatts of new power capacity in Mindanao by 2015.
He said 300-MW extra power will come from the clean coal facility of Therma South Inc., and 54-MW from the run-of-river hydro plants of Hedcor Inc. Therma South and Hedcor are wholly owned units of Aboitiz Power.
Currently, the Mindanao grid needs around 1,597 MW daily, but existing capacities only produce 1,261 MW.
"More than half of the power plants in the island source their energy from the Agus and Pulangi hydro stations, which are no longer capable of generating power based on their original installed capacity," Aboitiz said.
Diversify power sources
Therefore, Aboitiz said Mindanao must diversify its power sources to reduce its dependence on hydro.
"What needs to be put in place is a competitive and transparent environment where new capacity will complement the existing hydro plants of the National Power Corp.," he said.
He said a transparent environment will attract more investments, which in turn, will lead to adequate and reliable power supply needed to stir Mindanao's growth. - Rappler.com