DMCI Power Corp. is seeking government approval to build a 19-kilometer submarine cable connecting Semirara Island and Mindoro to save consumers at least P2 billion in annual electricity costs.
The proposed interconnection aims to displace expensive bunker and diesel power plants with a mix of coal and renewable energy.
DMCI Power president Antonino Gatdula said the company submitted a proposal to the Department of Energy to install coal, wind and solar facilities on Semirara Island to provide a steady baseload for the region.
“What we proposed to DOE is, we put up solar, wind and coal plants in Semirara. We need a strong baseload, 30 megawatt coal, and then the rest can be supplied using RE [renewable energy]. And we will connect Mindoro and Semirara,” Gatdula said.
Under the plan, the company will build a 30-megawatt coal plant and 100-megawatt wind project to augment its existing 12.5-megawatt capacity.
The proposal also includes solar developments totaling over 2,000 megawatts. Gatdula said Mindoro has a demand of about 100 megawatts, 60 percent of which is supplied by high-cost bunker and diesel fuel.
The P3-billion investment is expected to significantly reduce the universal charge for missionary electrification, a fee collected from all end-users to fund power in remote areas.
Gatdula said the savings remain substantial even after accounting for the tariff costs associated with the new cable infrastructure.
Describing the initiative as a “bridge project,” Gatdula said the connection between Semirara and Mindoro is the fastest and cheapest way to lower power costs compared to the proposed Batangas-Mindoro interconnection.
The company expects the inclusion of renewable energy sources to improve the chances of receiving regulatory clearance.
DMCI Power is a subsidiary of DMCI Holdings Inc. and serves as the largest independent off-grid energy supplier in the Philippines. It maintains an installed capacity of 188.3 megawatts across its portfolio in Masbate, Oriental Mindoro, Palawan and Antique.
