DMCI Power eyes Q2 decision on P3-B Semirara-Mindoro cable

DMCI POWER Corp. (DPC) said it expects a government decision by the second quarter (Q2) on its proposal to build a P3-billion submarine cable linking the islands of Semirara and Mindoro.

Speaking to reporters on Wednesday, DPC President Antonino E. Gatdula, Jr. said the company submitted the proposal to the Department of Energy (DoE) in November last year for the construction of a 19-kilometer subsea cable that would transmit electricity to Mindoro.

“We’re working on the submarine cable… maybe everything will become clearer in the next quarter,” he said.

If approved, the company aims to begin the project’s two-year construction period within the year.

“We call it a bridge project. We don’t need to wait for the connection of Batangas and Mindoro to lower the cost of power in Mindoro. The fastest option is through 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.

Due to the island’s heavy reliance on diesel and bunker fuel — which are typically more expensive than other energy sources — Mindoro faces high generation costs that are partly subsidized.

To improve power supply on Mindoro, DPC is proposing to develop more than 2,100 MW of additional capacity using a mix of coal, wind, and solar technologies.

“We need a strong baseload: 30 MW coal, and then the rest can be supplied using RE (renewable energy). And we will connect Mindoro and Semirara. And we will displace the bunker and diesel,” Mr. Gatdula said.

He added that the company plans to build a 100-MW wind farm to harness the island’s wind potential, as well as a solar facility with up to 2,000 MW of capacity.

DPC said that constructing the submarine cable and supplying electricity from Semirara to Mindoro could result in at least P2 billion in annual savings in the universal charge for missionary electrification (UCME), which is collected from on-grid consumers to subsidize power generation in off-grid areas.

“When we computed the savings, based on the current price of diesel and bunker, there will be not less than P2 billion per year of savings in UCME because we will displace the bunker and diesel,” Mr. Gatdula said.

The company said it is looking to tap foreign expertise for the construction of the proposed subsea cable.

Established in 2006, DPC focuses on supplying electricity to off-grid small and remote islands. It has 188.3 MW of installed capacity 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