Philippine Island’s Ailing Energy Sector Needs Investment

Philippine island Mindanao appeals to investors for help with its energy generation and distribution goals.
Published: Thu 02 Jul 2015

In a live studio interview at Asian Utility Week, Orville C. Lazaro, Department Manager Power Systems Planning, Davao Light and Power Co, talks about the shortage of power in Mindanao, the second largest and southernmost major island in the Philippines, and how it aims to maximise the current capacity.

Energy efficiency strategy failing

The distribution utility, in an attempt to conserve power, has put into place a roadshow which is aimed at educating consumers how to be more energy efficient. Mr Lazaro says that the roadshow, which forms part of a greater energy plan, hasn’t been very successful.

Investment opportunities

Mindanao is highly dependent on hydropower and is now aiming to diversify its mix in order to strengthen energy security and reliability. One way in which to do this is via regional interconnection lines so that sources across the islands can be shared. Mr Lazaro says that the strategy is to find the right mix but a lack of investment is a major obstacle. He says that the current hydro plants are well over 30 years old and require upgrading which also requires investment.

Mr Lazao concludes by appealing to investors to take advantage of the opportunities that the country’s energy sector offers. The opportunities exist in generation, distribution and energy management.