Davao Light to invest P1B yearly for system upgrade

By Carmelito Q. Francisco Posted on February 27, 2017 http://www.bworldonline.com/content.php?section=Corporate&title=Davao-Light-to-invest-P1B-yearly-for-system-upgrade&id=141297 DAVAO CITY — Davao Light and Power Co. (DLPC), a part of Aboitiz Power Corp.’s (AboitizPower) distribution group, is investing about P1 billion annually in the next 10 years for system refurbishment and expansion in its franchise areas within the Davao Region. “We need to refurbish our equipment and set up new ones like substations to be able to serve our customers the best way we can,” Rodger S. Velasco, DLPC executive vice-president, said in an interview. The company’s franchise area has been growing between 6% and 7%, according to Mr. Velasco, and DLPC needs to keep up with infrastructure buildup as well as ensuring steady supply sources. DLPC’s franchise area covers Davao City, and the neighboring towns of Sto. Tomas, Dujali, Carmen and Panabo City in Davao del Norte province. It has a total daily demand of about 410 megawatts (MW) and a current capacity of about 450 MW, excluding the 40-megawatt diesel standby plant. DLPC, the biggest buyer from the Mindanao grid, is poised to tap the region’s wholesale electricity spot market, which is planned for launch in June this year. “We will be able to tap the market, especially when our short-term PSAs (power supply agreements) expire within the next two years and when we find additional need for power,” Mr. Velasco said, referring to the aggregated 80 MW of supply that the company has contracted from ancillary energy providers. The company is sourcing about 50 MW from Southern Philippines Power Corp. and another 30 MW from sister-company Therma Marine, Inc. “The market will be a good source of power, but we need to be able to project the requirements of our franchise area,” he said, noting that among the considerations is when company’s power suppliers have shutdown schedules for preventive maintenance or emergency work.