Despite this growth, power supply is not an issue; there is currently an oversupply, according to Enriczar Tia, the President and chief Operating Officer of Davao Light and Power Company (DLPC).
Tia stated that, based on data from the National Grid Corporation of the Philippines (NGCP), Mindanao has an available power supply of 3,000 megawatts (MW), while its consumption is approximately 2,000 MW. “ We are sufficient in terms of power. According to NGCP, the total available power in Mindanao is 3,000 MW, and our consumption is around 2,000 MW, leaving us an excess of about 900 to 1,000 megawatts,” Tia shared during the Business Matters bi-weekly press forum at Abreeza Ayala Malls.
He also mentioned that Mindanao is interconnected with the Visayas grid, enabling the export of power to Visayas, which has a greater demand.
Currently, Visayas receives about 250 MW from the Mindanao grid. However, Tia noted that this should not be a cause for concern due to the 900 to 1,000 MW surplus.
Despite the ample supply, Tia stressed the importance of preparing for Mindanao's economic and population growth.
Citing information from the Davao City Investment and Promotion Center (DCIPC), he pointed out that Davao City is experiencing growth due to an influx of investments. “We need to assess the power requirements for the medium term, which is around five years,” he said. “In my view, we need to build more power plants in Mindanao in the coming years.”
Tia indicated that there are power plants in the planning stages, but decisions regarding these projects rest with the Department of Energy.
Davao City's power supply situation
Currently, Davao City has a power requirement of 540 MW. Tia noted that the city’s demand grew by 6 percent last year, further confirming the growth trend observed by the DCIPC. To meet the increasing power demand, DLPC is constructing one new substation each year, with a total of 31 substations built to date.
Tia mentioned that the focus is shifting towards the north side of the city, given the rise in investments in that area. He confirmed that the new DLPC substation in Lanang, located behind SM Lanang Premier, is already operational. This substation provides power to growing investments in the northside, including areas from Buhangin to Sasa.
Tia clarified that DLPC needs to coordinate with DCIPC and business owners regarding the timelines for new investments, as it typically takes two years to build a substation, excluding land acquisition. “If new investments arise, we will construct substations in those areas. The substations need to be completed before the investment projects finish, ensuring we are ready to provide power once they are operational,” Tia explained.
Power rates in Davao
In January, the average residential power rate in Davao City was 8.9 pesos per kilowatt-hour; by February, the rate dropped to 8.4 pesos. Tia noted that this rate is significantly lower compared to neighboring utilities in other cities within the Davao Region. “We are 25 to 30 percent lower, which boosts investment attractiveness when power rates are stable and affordable,” he explained.
Regarding potential rate increases, Tia mentioned that DLPC does not foresee any adjustments. “The rates depend on the market. If the Visayas require more power due to shortages, that could deplete the supply in Mindanao. If the supply in the Wholesale Electricity Spot Market (WESM) decreases and demand increases, we might see a slight price rise. However, we are reliant on WESM, which is contingent on developments in the Visayas,” Tia pointed out.
Enriczar Tia, the president and COO of Davao Light and Power Company (DLPC) briefs Davao media on power updates in Mindanao.
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