2.3 Mindanao

2. EXECUTIVE SUMMARY (Volume 2: Regional Energy Plans)

The 2005 PEP Update embarked on the preparation of Regional Energy Plans (REPs) of selected regions to ensure more focused, comprehensive, region-specific energy plans. This initiative was consistent with the strengthened mandate of the DOE to “develop, prepare and update an integrated national energy plan and other support plans for the energy sector”. The REPs likewise aim to highlight the role of energy as a critical sector in the region’s development and provide in-depth details that will substantiate the indicative plans and programs under the PEP Update.

2.3 Mindanao

Recognized as "gateway to opportunity" or “the untapped frontier” for domestic and international investors eyeing for opportunities in agribusiness, power, industry, and tourism, the regions in Mindanao are vital in the formulation of this Plan. With the expected increase in the region’s economic development, formulation of REP for Region X or Northern Mindanao and Region XI or Davao region was considered.

2.3.1 Region X

With its existing ten major river systems whose waters have already been partly tapped or can still be tapped, development of indigenous resources in Region X, particularly hydropower, is targeted to provide additional power generation facility particularly for off-grid applications. The hydropower projects available for investment totaled 565 MW which include 523 MW of large-hydropower projects and 43 MW for mini-hydropower projects.

To avert the looming power shortage in Mindanao, the 210-MW Mindanao Coal Power Project is scheduled for commissioning in 2007. Other indicative power projects located in the region are the 8-MW Cabulig Mini-hydropower Plant, the 30-MW power expansion plant of Minergy Corporation and the 68-MW Tagoloan Hydropower Plant. Among the transmission network to be commissioned during the planning period are the 230-kV Abaga-Kirahon transmission project and the 230-kV Kirahon-Bunawan transmission project.

The scheduled energization of the remaining 158 unelectrified barangays will be pushed through from 2005 to 2008 and will be supported by the installation of 1,104 ckt.-km. of additional distribution lines, rehabilitation of 720 ckt.-km. of distribution lines and installation of substations with a total capacity of 150 MVA.

In terms of the region’s downstream facilities, enhancement of existing coal facilities and/or satellite terminals shall be undertaken to meet the growing coal market requirements. Likewise, feasibility studies for the construction of various natural gas infrastructure facilities are being conducted for the region.

2.3.2 Region XI

In this 2005 Plan Update, exploration and development of Region XI’s indigenous resources such as geothermal and hydropower will be a continuing priority of the DOE. A total of 60 MW (20-MW Amacan project and 40-MW Southeat (SE) Apo project) of geothermal capacity located in the region is envisioned for commissioning. Harnessing of hydropower prospects specifically in the electrification of isolated island grids will be supported in collaboration with various foreign donors and funding agencies.

Under the transmission and substation capacity addition program in the region, facilities will increase by as much as 49 ckt.-km. of 69 kV lines and 300-MVA substation capacity. For the small island grids, total installed capacity will reach 3,849 kW in 2014. NPC-SPUG will embark on a project on power interconnection of Samal Island with the Mindanao Grid.

To attain full energization, the remaining 13 barangays will be provided with electricity from 2005 to 2007. A total of 924 ckt.-km. of distribution lines will be rehabilitated while expansion of 394 ckt.-km. of distribution lines will be undertaken, requiring the installation of additional 75 MVA of substation capacity.

Given the expanding usage of natural gas, infrastructure facilities such as offshore-offloading terminal and refilling stations need to be constructed. Likewise, a project that will convert existing public utility vehicles to natural gas is being proposed.