CITY OF MATI — An 11 megawatts power plant is nearing completion in the City of Mati that is seen to answer the woes of consumers who are affected by the frequent brownouts experienced in Davao Oriental the past months.

It was in 2017, when the Supreme Power Corporation (SPC) started their diesel bunker-fired power plant project in Barangay Dawan. It took them a long time for the conversion of their plant site from residential/agricultural to industrial classification.

The construction of their power plant only started in 2019 and has a budget of P1.1B comprising of three 3.68 MW Wartsila Engine Model 8L32 for a total power output of 11 MW and other special equipment from Finland and India.

According to SPC Electrical Engineer Leovino Alcaraz Jr, the power plant can provide immediate electricity when City of Mati urgently needs it. He assured the electricity voltage is completely stable to preserve appliances like refrigerator, air condition, electric fans, and others.

To meet environmental requirements, SPC uses Desulfurizer Scrubbers which cost millions to spray caustic soda solution or equivalent chemical to the outgoing exhaust gas. This is to ensure that no harmful fumes come out of the plant and reach the surrounding areas.

“This power plant is specialized if we need urgent power. This will also help Mati City together with the Province of Davao Oriental on its constituents in boosting economy and industrialization,” Engr Alcaraz Jr said.

In light of the frequent brownouts in the city, Engr. Alcaraz said the power plant in SPC will serve as big help to lessen the problems of power outage.

“This project is in partnership with Davao Oriental Electric Cooperative or DORECO. Dako gyud ni siya na tabang para masolusyonan ang mga nahitabo nga brownout,” Alcaraz added.

SPC Consultant-PME Numeriano D. Garinganao said if the capacity is more than the demand, the voltage will be controlled and stable.

“Instant among mahatag na power, the supply of power or energy will be controlled by the capacity of the generators. There’s a control device that controls the actual energy delivered and speed of the driving machine. That’s the advantage which might the SPC be able to provide by the 11 MW,” he said.

The power plant in Dawan is expected to be completed by March 2021. The SPC however emphasized that the plant might not be fully operational by then because of the delay of the special equipment from India.

“Naay chance nga dili pa full operation karong March (2021) kay gikan pa sa India ang uban nga equipment particularly sa electrical controls unya ma-delay siya because of the COVID-19 pandemic,” Engr. Garinganao said.

Once fully operational, the SPC electricity rate would depend on the existing rate of the Davao Oriental Electric Cooperative or DORECO plus the rate impact of the diesel bunker-fired power plant at P1/kWh.

According to DORECO, as of November 2020, their residential electricity rate after VAT is at P9/ kWh.

ERC Approval sought

In January this year, SPC and DORECO sought for the approval of the Energy Regulatory Commission (ERC) for their Electricity Supply and Transfer Agreement. 

SPC won the bidding during a Competitive Selection process conducted by DORECO in compliance with ERC Resolution No. 13, series of 2015.  DORECO determined that SPC’s power supply offer was “the most advantageous” considering the long-term power supply requirement of its franchise area.

DORECO’s power supply has been adversely affected by the continued decrease of the contracted capacity allocated by the National Power Corporation/Power Sector Assets and Liabilities Management Corp. (NPC/PSALM).

Documents filed by DORECO to the ERC shows that SPC was chosen for the following reasons:

1. The offer of Supreme was the least cost among the bids

2. Supreme would finance and build a brand new power plant that would use less expensive bunker fuel

3. The facility proposed by Supreme includes the installation of a flue gas desulfurizer which results in cleaner and more environment friendly emissions from the plant’s operation

4. DORECO will not be subject to transmission charges and will not be susceptible to outages in the transmission grid

5. At the end of the Cooperation Period, Supreme will transfer the Power Plant to DORECO for no additional consideration; 

6. DORECO would obtain ownership of the Power Plant within its franchise area without any outright financial out lays and without need for obtaining any loans 

Supreme Power Corporation is a corporation owned by local investors from Mindanao mostly from Region 12 or the SOCSKSARGEN area.

The company was endorsed by the Department of Energy last April 2013 to engage in a business of developing and operating conventional and renewable energy resources, sell electricity, act as wholesale and retail electricity supplier and engage in operational of power plants.

SPC’s first project was in Koronadal City. They also have ongoing projects in Bohol and Tarlac. (CIO MATI with reports from