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Electricity consumers and renewable energy advocates are pushing for a faster transition to clean energy in Mindanao, warning that expanding coal-fired power generation could expose the region to higher power costs and greater vulnerability to global fuel price shocks. The calls gained renewed urgency as proposals to rehabilitate the aging Agus and Pulangi hydropower complexes advance and foreign investors signal growing interest in Mindanao’s renewable energy sector, particularly in hydro, solar, and offshore wind projects.
This development comes as the Department of Energy (DOE) considers lifting the moratorium on new coal-fired power plants, a move opposed by several energy and consumer advocates who argue that Mindanao’s own experience demonstrates the risks of relying heavily on imported fossil fuels.
BenCyrus Ellorin, project director of Consumers for Renewable Energy Advocacy in Mindanao (CREAM), said the region’s transition from hydro-dominated power generation to coal dependence over the past decade had already contributed to rising electricity costs.
“The rise of energy cost in Mindanao began when it became dependent less on hydro and more on coal-fed capacities about a decade ago,” Ellorin said, citing a study conducted by CREAM and the Mindanao Renewable Energy Acceleration and Coordination Hub.
Coal Dependence
Coal currently accounts for about 49 percent of Mindanao’s energy mix, while hydropower contributes around 26 percent. Coal became dominant after the aging Agus and Pulangi hydropower facilities experienced declining reliability amid growing electricity demand in the region.
Ellorin warned that coal prices remain highly volatile because they are heavily exposed to global market disruptions and currency fluctuations.
He pointed to the sharp increase in coal prices during the COVID-19 pandemic and the onset of Russia’s invasion of Ukraine, when electricity rates from coal-fed power plants surged dramatically.
“From contracted costs of ₱6 per kilowatt-hour, the cost of coal-based electricity shot up to ₱17/kWh because of the price disruptions caused by global events,” he said.
According to Ellorin, consumers often fail to realize that while coal power may initially appear cheaper, electricity rates are still subject to automatic adjustments tied to global fuel prices and foreign exchange movements.
Consumer advocates are now urging the government to focus instead on renewable energy development and faster approval of clean energy projects.
“There is absolutely no clamor from the people to lift the coal moratorium,” CREAM said in a statement. “We want, instead, a clear policy that simply says: No more new coal-fired power plants.”
Hydro Rehabilitation Plans
Central to Mindanao’s clean energy transition is the planned rehabilitation of the state-owned Agus and Pulangi hydropower complexes, which advocates say could significantly reduce electricity costs while boosting the region’s renewable energy supply.
The Agus and Pulangi facilities, now under the ownership of the Power Sector Assets and Liabilities Management Corp. (PSALM), currently generate around 600 megawatts (MW). Once rehabilitated, their combined capacity could increase to approximately 1,000 MW.
“This is a big boost to Mindanao’s transition to clean energy,” Ellorin said. He noted that PSALM has already received two unsolicited proposals for the rehabilitation project. One proposal reportedly came from a subsidiary of San Miguel Corp., while another was submitted by Mindanao-based Greenergy Development Corp., a company known for pioneering solar energy systems in the region.
Engineer Cereal Donggay, president of Greenergy Development Corp., confirmed that their proposal had already passed the “completeness” evaluation of the Public-Private Partnership (PPP) Center and would proceed to a detailed assessment by PSALM.
Greenergy proposed the rehabilitation of the six Agus hydropower plants located in Lanao del Sur and Lanao del Norte, as well as the Pulangi IV plant in Maramag, Bukidnon, at an estimated cost of ₱35.76 billion.
Ellorin said restoring the aging hydropower facilities is long overdue, warning that continued operation without major rehabilitation risks irreversible deterioration of the assets.
Advocates also believe the upgraded hydro facilities could improve Mindanao’s competitiveness as an industrial hub by lowering electricity costs and stabilizing power supply.
The Mindanao Development Authority has earlier set a target of increasing renewable energy’s share in the region’s power mix to 50 percent by 2030, aligned with the country’s broader push to reduce fossil fuel dependence.
Foreign Investor Interest
Interest in Mindanao’s renewable energy potential is also drawing attention from foreign investors, particularly from countries with extensive experience in clean energy technologies.
Norwegian Ambassador to the Philippines Christian Halaas Lyster said Mindanao presents strong opportunities for investments in hydropower, solar, and offshore wind projects.
“Looking at Mindanao alone, I see potential for investments in renewable energy,” Lyster said during the EFTA-Mindanao Dialogue held in Davao City.
He noted that Norway generates about 98 percent of its electricity from hydropower and has developed significant expertise in renewable technologies, including offshore wind and floating solar systems.
“We have a lot of companies who have been working on solar, floating solar, wind, and especially offshore wind. These are areas where there’s a lot of potential in Mindanao,” he said.
Lyster said Norwegian companies were exploring opportunities across the Philippines, while Norfund, Norway’s investment fund, was also looking to expand its existing portfolio in the country.
Lyster said the growing global push to move away from fossil fuels should encourage countries like the Philippines to accelerate the transition toward cleaner energy sources.
“It’s a push not only for the Philippines but for a lot of countries to move faster towards a green transition,” he said.
Source:
https://newsinfo.inquirer.net/2221349/advocates-want-green-energy-projects-hastened
https://newsinfo.inquirer.net/2223985/rehab-of-mindanao-hydros-seen-to-boost-power-supply
https://www.mindanaotimes.com.ph/ambassador-hopeful-about-mindanao-re-investments/
