Aboitiz Equity Ventures (AEV) has proposed the adoption of the Wholesale Electricity Spot Market in Mindanao to spur competition in the generation space in a bid to prices of power.
The implementation of WESM in Mindanao formed part of the short- to long-term solutions proposed by AEV to help manage the potential increase in commodity costs.
Arturo Milan, Mindanao adviser for AEV and former president of Aboitiz Power Corp. subsidiary Davao Light and Power Co. said Mindanao has an excess power supply of around 1,000 megawatts but electricity costs are expected to increase due to the volatility of fuel costs in the global market resulting from the Russian-Ukraine war and foreign exchange rates.
Mindanao currently has an excess power supply of over 1,000 MW, given its current dependable capacity of 3,082 MW and only around 1,975 MW in demand.
“For us to be able to take advantage of our excess supply and hopefully get lower rates on electricity, we need this WESM in Mindanao,” Milan said.
Over the mid-term, Milan advocated for the rehabilitation of the hydro facilities in Mindanao, especially the Agus and Pulangi plants to increase their capacity which dropped due to age and usage.
Milan called for the interconnection of the Mindanao and Visayas grids which will allow the export of excess power to other areas and attain efficiency in the different generating plants.
He also encouraged residential consumers to practice energy conservation habits such as unplugging hot water dispensers and kettles when not in use, maximizing laundry machine loads, and switching to energy-efficient appliances to reduce energy wastage and increase energy productivity.
Russian President Vladimir Putin on Thursday vowed to continue attacking Ukrainian energy systems despite global criticism of strikes that have left millions without electricity and water at the start of winter.