Energy Secretary Alfonso Cusi shunned the idea power oversupply in the country.
“There is no oversupply. It depends on who’s talking… I don’t believe there will be oversupply, not even Mindanao,” Cusi said.
Some power companies expressed their fear of oversupply should all announced power projects will be operated as scheduled, while some say that new plants will just replace old power plants and will not answer the county’s demand growth.
Cusi said that the government is working with various agencies that will ensure timely construction and completion of plants to avoid power shortage.
“Today, everything has to be all coordinated, including PSA (power supply agreements… What do you want, oversupply or short supply?” Cusi said.
The energy secretary added that they’re pushing power plant efficiency levels audit.
“We want to motivate them to be more efficient. Also their compliance to standards, so the plants run efficiently and the required supply is available,” he added.
Meanwhile, Cusi said that the department is looking to place a Wholesale Electricity Spot Market in Mindanao by June of 2017.
“This is the right time for Mindanao to have a spot market. It’s the first time in decades for Mindanao to have oversupply,” AC Energy Holdings president John Eric Francia said earlier.
“There are talks (for WESM Mindanao) but there are also resistance… not all coops are on board at this time. We have to look forward to that given the overcapacity situation is likely to stay,” he said.
He added that the spot market could give chances in buying cheaper power.