Davao City — Aboitiz Power Corporation and its subsidiary Davao Light and Power Co. Inc. (Davao Light) hosted a two-day Power 101 session for the members of the Davao media covering the energy beat.
Representatives from the Department of Energy’s (DoE) Electric Power Industry Management Bureau and faculty members from the University of the Philippines Los Baños (UPLB) Department of Economics provided an overview of the Philippine power sector and the energy markets; the policy and regulations that influence it; along with the current state, challenges, and future prospects of the electric power sector in Davao.
In its presentation, the DoE indicated that, from the start of the year to the first week of October 2024, average actual gross reserve in the Mindanao grid stood at 933 megawatts (MW), with 3,166 MW in average available capacity and 2,233 MW in average system demand.
While commending the recent integration of Mindanao into the national grid, Davao Light Head Zar Tia underscored the importance of having more suppliers, especially as electricity demand will continue to grow through the next decade.
The DoE also outlined the Philippine Energy Plan 2023-2050, which intends to increase the share of renewable energy to more than 50% by 2050; repurpose coal facilities; as well as add nuclear and offshore wind capacities to the power mix.
In 2023, 62% of power generation in gigawatt hours in the Philippines was from coal, 22% from renewable energy, 12% from natural gas, and 4% from oil-based sources.
Faculty members from UPLB noted that, on average, it takes seven years to build a power plant.
“Speakers from the Department of Economics elaborated [on]… relevant economic concepts, tools and methods [that] accompany the discussions [covering] the energy sector, as well as electricity,” UPLB faculty members said. “Emphasis was placed on [the] specificity of electricity as a service and its importance in economic growth and development.”
Some highlights of the training include the Electric Power Industry Reform Act (EPIRA); the Wholesale Electricity Spot Market (WESM) as an institution and its mechanisms; government taxation and subsidies for electricity; and national regulatory frameworks that align with the United Nations Sustainable Development Goals (UN SDGs) and the ASEAN framework on energy.
“We recognize the value that you bring to our society,” said Davao Light Head Zar Tia, addressing the Davao media. “Economic development would not be possible without you spreading the right [and] responsible information… We recognize that the media is really our partner in doing this advocacy of ours.”
Davao Light is the third largest private electric distribution utility in the Philippines, with a franchise area covering the cities of Davao, Panabo, and the municipalities of Carmen, Dujali, and Sto. Tomas.
