Zamboanga City faces the threat of power fluctuations and outages due to a delay by the Energy Regulation Commission (ERC) in approving an ancillary services purchase agreement (ASPA) between the National Grid Corporation of the Philippines (NGCP) and Western Mindanao Power Corporation (WMPC).
The city and the entire Zamboanga Peninsula are at high risk of voltage fluctuations and outages without the agreement.
WMPC on April 18, 2023 was awarded a contract through a competitive selection process (CSP) overseen by a third-party committee, following Department of Energy (DOE) circulars and ERC issuances. However, the ERC’s inaction on the contract threatens the reliability of Zamboanga City’s and the entire peninsula’s power supply, potentially leading to frequent and extended outages.
Since 2020, NGCP has relied on WMPC to provide dispatchable reserve and reactive power support, crucial for maintaining grid stability and ensuring a consistent electricity supply.
Zamboanga City Mayor John Dalipe, in a letter to the ERC, emphasized the importance of these services in preventing outages and voltage fluctuations that could damage electrical equipment and severely impact the local economy and residents’ quality of life.
The Zamboanga City Electric Cooperative (ZAMCELCO) echoed the mayor’s concerns, highlighting the necessity of WMPC’s services for stabilizing their distribution lines and ensuring a reliable power supply.
Data show that an hour of power outage in Zamboanga City could result in economic losses of P5 million to P15 million. A cement factory alone can suffer P2 million in losses per hour.
Additional economic losses are likely due to damaged appliances, pumps, air conditioners, and other electrical devices from voltage fluctuations.
NGCP recently awarded WMPC an ASPA contract to provide reserves and other ancillary services for the Mindanao grid, critical for ensuring a reliable power supply for the entire Zamboanga Peninsula.
The Sangali Substation in Zamboanga City is linked to substations in Lanao del Norte, some 279 kilometers away. The distance causes voltage drops during peak hours (8 am to 10 pm) without reactive power support (RPS).
WMPC is the only power plant capable of supplying RPS to Zamboanga City and nearby areas. It has consistently provided RPS to the Mindanao grid, maintaining voltage requirements as mandated by the Philippine Grid Code.