By Sheldeen Joy Talavera, Reporter
THE GOVERNMENT is exploring the possibility of building the Agus III hydroelectric power plant to go with the rehabilitation for the Agus-Pulangi Hydropower Complex (AHPC).
“We will move forward in the rehabilitation of the Agus-Pulangi and the possibility is now open for building the still unbuilt Agus III plant, which has a potential of 225 megawatts (MW),” Energy Secretary Raphael P.M. Lotilla told reporters on the sidelines of an event in Quezon City last week.
The complex, owned by the Power Sector Assets and Liabilities Management Corp. (PSALM) and operated by the National Power Corp. (NPC), consists of seven run-of-river hydroelectric power plants in southern and central Mindanao with a combined installed capacity of about 1,000 MW.
However, only 600-700 MW is currently operational due to aging equipment and infrastructure problems, according to a 2024 World Bank report.
“Additionally, the APHC is grappling with issues such as cooling system failures, turbine-generator shaft vibration, and outdated auxiliary equipment and control systems,” according to the report.
At a Senate hearing in October, PSALM President and Chief Executive Officer Dennis Edward A. dela Serna said that the company is planning to pursue a concession arrangement to go with the rehabilitation, but is still soliciting comment on the modality of the prospective deal.
As per previous estimates by the World Bank, the rehabilitation of AHPC will cost about $350 million.
“If we finish the rehabilitation of the Agus-Pulangi plant, this will restore an additional 400 MW of hydropower in Mindanao, which is very significant,” Mr. Lotilla said.
With the APHC set for rehabilitation, the government is considering revisiting the plan for the early retirement or repurposing of the 200-MW Mindanao coal-fired power plant (CFPP) in Misamis Oriental.
The Mindanao CFPP is the only remaining government-owned coal-fired power plant in the Philippines. It is operated by SPI Power, Inc., formerly known as STEAG State Power, Inc., under a build-operate-transfer arrangement.
The Philippines plans to accelerate the voluntary retirement of up to 900 MW of CFPP generation capacity by 2027 under its Accelerating Coal Transition Investment Plan.
Mr. Lotilla said that since available capacity would be reduced with AHPC rehabilitation, the government will have to revisit “whether or not the STEAG plant in Mindanao should be running or should be folded up.”
“If the rehabilitation of Agus and Pulangi takes place in the next few years, then we will need backup from the STEAG plants to assure our people of sufficient power capacity,” he said.
PSALM was created under Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001, to oversee the privatization of NPC generation assets, liabilities, independent power producer contracts, real estate assets, and other disposable assets. Its corporate life is set to expire in June 2026, or 25 years after the effectivity of the Electric Power Industry Reform Act. Should PSALM be dissolved, all of its assets and liabilities will revert to the National Government.
