The Department of Energy (DOE) on Sunday said the recent extension of the Power Sector Assets and Liabilities Management Corp. (PSALM) corporate life will pave the way for the government to begin the rehabilitation of the Agus-Pulangi hydro power complex in Mindanao. DOE Secretary Raphael Lotilla emphasized the significance of restoring the complex’s full capacity, which could add 400 megawatts (MW) to Mindanao’s energy supply. The complex has an installed capacity of 1,000 MW but only 600 MW is operational.
In addition to rehabilitation efforts, the DOE is considering the development of a new unit to further increase capacity by 225 MW, potentially boosting the complex’s total output to over 1,200 MW. However, as the hydro plants undergo restoration, the DOE must revisit plans for the 210 MW Mindanao coal-fired power plant. Lotilla said that discussions are underway on the future of the plant, particularly in relation to potential carbon credits and alternative renewable energy (RE) options.
Last month, lawmakers approved the PSALM’s corporate life extension for an additional five years, securing its role in privatizing government-owned power assets and addressing outstanding financial obligations. As of 2024, PSALM’s financial liabilities amount to P273.51 billion.
