CAGAYAN DE ORO CITY- Slowly but surely, Mindanao is moving towards attaining a just energy transition target of a 50/50 thermal/renewable energy (RE) mix in its power grind.
In just two months, two more establishments in Cagayan de Oro have been converted to 100% Renewable Energy by First Gen Corp (First Gen).
Last Oct 3, Mets Cold Storage Services, Inc (Mets), formerly known as Mets Logistics, Inc, tapped First Gen to power its cold storage facility in Cagayan de Oro City with geothermal power, in line with the company’s thrust towards more sustainable operations.
The supply agreement covers up to 2,050 kilowatts demand to cover the on-going expansion of the facility in Tablon, Cagayan de Oro, with a current capacity of over 7,100 metric tons of cold storage space.
More recently, under the agreement signed by Capitol University Medical Center (CUMC) and First Gen last month, the latter would supply 900 kilowatts (kW) of geothermal power to support the electricity needs of the 200-bed hospital, including its Kidney Institute, and other specialty care facilities.0
“CUMC’s shift to geothermal power is more than an energy decision—it is a bold declaration of support to Mindanao’s energy transition and in securing a cleaner, more resilient future for our people. These decisions echo far beyond their boardrooms and clearly shows what is possible when vision meets resolve—bringing us closer to our 50/50 energy mix by 2030,” said Asst. Secretary Romeo Montenegro, Deputy Executive Director of the Mindanao Development Authority (MinDA), which is leading the advocacy to attain energy parity between thermal and RE in the Mindanao Grid by 2030.
Barely two years previously, Nestle’s Cagayan de Oro plant’s 8.5MW requirement was shifted to 100% RE through hydroelectric power sourced from Minergy’s Cabulig mini-hydroelectric plant in Plaridel, Claveria, Misamis Oriental. The transition to RE hydroelectric power will save some 31, 962 metric tons of carbon dioxide (CO2) from being discharged into the atmosphere every year. (UNFCCC-CDM)
These baby steps towards 100% RE may not be significant by themselves, but they indicate a growing trend with even small and medium establishments willing to take the extra step to help mitigate the effects of global warming by displacing fossil-fuel based electricity with renewable energy, a long-time RE advocate noted, who preferred not to be named.
Future of RE in Mindanao
According to BenCyrus G. Ellorin, Director, Consumers for Renewable Energy Action in Mindanao (CREAM), Mindanao is looking forward to an additional 2,134.8 MW of RE between 2025-2030, with 265.16 MW committed, and 2,455 MW of indicative projects, in addition to the 1,513MW currently installed.
Ellorin said the peak demand of Mindanao has accelerated from 3.3% in 2015 to 10.9% in 2024, with an Annual Average Growth Rate of 5.8% over the last decade.
However, these projections were made with the following caveats:
Installed RE capacity needs to grow by at least 8% until 2030. No new coal fired capacities (greenfield/brownfield) should be allowed, and the early decommissioning of the DOE’s Mindanao Coal plant (SPI Power Inc), either through the Energy Transition Mechanism (ETM) or the BOT Law should push through.
The early decommissioning of 232MW coal-fired power plant, would reduce the 3,101MW fossil installed capacity 2,869MW, very proximate to the projected parity figure of 2,903MW in 2030.
Firm upthe coal moratorium. Rather than relax further the already nebulous, brownfield, greenfield classification of coal-fired power plant projects, there should be a clear policy on “NO MORE NEW COAL PLANTS; NO MORE COAL PLANT EXPANSION IN MINDANAO.”
Renewable ONLY electrification for the balance of Mindanao’s unserved households. For government to make a policy for the exclusive use of renewable energy in the electrification of 1,070,562 unserved households. President PBBM’s SONA was pretty clear on the preference of Solar PVs to power the country’s electrification balance.
NO to LNG. LNG emits as much carbon as other fossil fuels. The process of liquifying and gasification of natural gas consumes a lot of energy, thus contributing to carbon emissions. LNG is imported, and thus its price is volatile, just like coal and diesel.
Aggressive promotion of wind, run-of-hydro and biomass. Shorten the permitting process for small run-of-river hydropower plants;. Develop Mindanao’s geothermal power resources.
Strengthenthe policy on priority dispatch for renewable energy and least cost power acquisition for all Power Supply Agreements. This would ease out inefficient and expensive diesel and coal-fired power plants out of the market. Study the decommissioning of oil-based power plants. As of 2024, the total installed capacity of these diesel plants was 833MW, or 18.1% of the energy mix.
Strictimplementation of RPS and ramp up promotion of net-metering, GEOP and Expanded Solar Rooftop Program.
“We support the proposal to impose still fines of up to P100 million to distribution utilities violating the RPS. If implemented to the letter, by 2030, demand for renewable energy in Mindanao from RPS alone is 23.16% (incremental 1% from 2020 – 2022; 2.52% annual increment from 2023- 2030). At projected peak demand of 5,803MW in 2030, RPS alone would demand 1,344 megawatts of RE from the grid,” Ellorin stressed.
Requirerenewable energy development in Local Energy Planning. Local government are frontliners in the development renewable energy capacities. LGUs should facilitate the development of RE projects, by providing ease-in-doing-business, and providing local tax incentives to RE investments. For DOE and DILG to revisit and strengthen DOE-DILG Joint Memo Circular 2020-01.
To ensure adequate power supply and grid stability during this critical period, the Energy Supply Project (ESP) which entails the rehabilitation, operation and maintenance of the Agus-Pulangi Hydropower Complex (APHC) using floating solar farms in Lake Lanao under a 30-year concession agreement should be operationalized as soon as possible.
Agus-Pulangi ROM Option
To lend further impetus to the drive for 50%RE by 2030, a consortium has submitted an unsolicited proposal to Rehabilitate-Operate-Maintain (ROM) the Agus-Pulangi Hydroelectric Power Complex (APHC) under a 30-years concession period that would further modernize and uprate its capacity to 1,000 MW through a Special Purpose Vehicle (SPV) to me owned by Mindanao’s power consumers.
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