MANILA, Philippines — In a proactive move to insulate local communities from a volatile energy market, one of the country’s leading power generation groups has secured a critical supply buffer for Northern Mindanao. Aboitiz Power Corp. (AboitizPower) has officially signed a 2-megawatt (MW) Emergency Power Supply Agreement (EPSA) with the Misamis Occidental I Electric Cooperative Inc. (MOELCI-I).
The strategic agreement was executed through AboitizPower’s subsidiary, Therma South Inc. (TSI), marking a historical structural shift in the subsidiary’s regional procurement operations.
An Emergency Power Supply Agreement serves as a short-term, specialized regulatory safety net designed to protect consumers from immediate generation shortages or potential rotational blackouts:
- The CSP Exemption: By utilizing an EPSA, the transaction is legally exempted from the standard, lengthy Competitive Selection Process (CSP). This allows the power provider to deploy immediate energy reserves to the electric cooperative during critical operational windows.
- A Historic First: This transaction officially makes history as the first-ever EPSA executed by TSI since it began commercial operations, highlighting how power firms are adopting flexible contracting mechanisms to navigate changing market dynamics.
- The Catalyst: Energy analysts point out that the integration of the Mindanao grid into the Wholesale Electricity Spot Market (WESM) has introduced severe price volatility, prompting distribution utilities to forge immediate bilateral contracts to hedge against spot price spikes.
The 2-MW supply injection is engineered to reinforce grid reliability and maintain uninterrupted electricity service across a wide swath of Misamis Occidental:
[TSI 300-MW Baseload Plant] ──► [2-MW Emergency Supply (EPSA)] ──► [MOELCI-I Grid Stabilization] │ ┌────────────────────────────────────────┴────────────────────────────────────────┐ ▼ ▼ [ OROQUIETA CITY ] [ 7 COVERED MUNICIPALITIES ] Central administrative & commercial hub. Aloran, Lopez Jaena, Plaridel, Calamba, Baliangao, Sapang Dalaga, & Concepcion.
TSI delivers its contracted electricity from its flagship 300-MW baseload thermal power plant, strategically situated on the border of Davao City and Santa Cruz, Davao del Sur. The subsidiary currently services more than 20 separate electric cooperatives and distribution networks spanning the entire Mindanao region.
The emergency deal underscores a highly robust operational year for the AboitizPower group. Backed by solid capacity buildouts, higher contracted volumes, and strong base asset availability, the parent firm kicked off the fiscal year with a massive 71-percent surge in net profit, climbing to ₱7.9 billion in the first quarter.
Furthermore, the energy giant is aggressively pairing its baseload reliability with sustainable grid transitions, having recently fired up three major greenfield assets—the 221-MWp Olongapo, 47-MWp Armenia, and 93-MWp San Manuel solar power farms—to diversify the country’s energy mix.
“Our partnership with AboitizPower has always been rooted in reliability and mutual trust, and this EPSA is a reflection of that. For over ten years, TSI has been a steadfast partner in keeping the lights on for our customers, and we are proud that this agreement makes history as the first of its kind.” — Engr. Guilvin Medina, MOELCI-I General Manager