DMCI POWER Corp. (DPC) said it expects a government decision by the second quarter (Q2) on its proposal to construct a P3-billion submarine cable linking the islands of Semirara and Mindoro.
Chatting with reporters on Wednesday, DPC President Antonino E. Gatdula, Jr. said the corporate submitted the proposal to the Department of Energy (DoE) in November last yr for the development of a 19-kilometer subsea cable that will transmit electricity to Mindoro.
“We’re working on the submarine cable… possibly all the things will turn into clearer in the subsequent quarter,” he said.
If approved, the corporate goals to start the project’s two-year construction period throughout the yr.
“We call it a bridge project. We don’t must wait for the connection of Batangas and Mindoro to lower the fee of power in Mindoro. The fastest option is thru Semirara and Mindoro, as this route has the shortest distance,” Mr. Gatdula said.
At present, combined power demand in Occidental and Oriental Mindoro exceeds 100 megawatts (MW), most of which is supplied by bunker- and diesel-fired plants, he said.
As a consequence of the island’s heavy reliance on diesel and bunker fuel — that are typically costlier than other energy sources — Mindoro faces high generation costs which can be partly subsidized.
To enhance power supply on Mindoro, DPC is proposing to develop greater than 2,100 MW of additional capability using a mixture of coal, wind, and solar technologies.
“We’d like a robust baseload: 30 MW coal, after which the remaining could be supplied using RE (renewable energy). And we’ll connect Mindoro and Semirara. And we’ll displace the bunker and diesel,” Mr. Gatdula said.
He added that the corporate plans to construct a 100-MW wind farm to harness the island’s wind potential, in addition to a solar facility with as much as 2,000 MW of capability.
DPC said that constructing the submarine cable and supplying electricity from Semirara to Mindoro could end in at the very least P2 billion in annual savings within the universal charge for missionary electrification (UCME), which is collected from on-grid consumers to subsidize power generation in off-grid areas.
“Once we computed the savings, based on the present price of diesel and bunker, there will probably be not lower than P2 billion per yr of savings in UCME because we’ll displace the bunker and diesel,” Mr. Gatdula said.
The corporate said it’s trying to tap foreign expertise for the development of the proposed subsea cable.
Established in 2006, DPC focuses on supplying electricity to off-grid small and distant islands. It has 188.3 MW of installed capability and operates thermal, bunker, diesel, and wind power plants in Masbate, Oriental Mindoro, Palawan, and Antique.
DPC is a subsidiary of Consunji-led DMCI Holdings, Inc., which has business interests in construction, real estate, mining, power, cement, and water services. — Sheldeen Joy Talavera