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THERMA South Inc. (TSI), a wholly owned subsidiary of Aboitiz Power Corp., is set to commission on Friday the 150-mw Unit 2 of the coal-fed 300-mw Therma South Energy Project in Toril, Davao city.

The plant was originally scheduled to start operations in March 2016.

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TSI infused P25 billion for the construction of the 300-mw coal plant, which started in 2012 and completed in three years.

“The power plant is one of the critical projects needed to finally solve the long-term perennial Mindanao power shortage,” a TSI statement said.

The firm supplies at least 20 electric cooperatives and distribution utilities across Mindanao.

The 150-mw first unit of TSI went on full commercial operations last Sept. 18.

The power plant would supply power to the cities of Davao, Cagayan de Oro, General Santos, Butuan, Kidapawan, Cotabato and Tagum, and the provinces of Davao region, Caraga, Cotabato, Sultan Kudarat, Sarangani, parts of Bukidnon, parts of Misamis and parts of Zamboanga peninsula.

This development comes at a time when the National Grid Corp. of the Philippines (NGCP) declared a “yellow alert” as two state-owned hydroelectric power plants in Lanao del Sur remained isolated from the Mindanao grid.

Melfrance Capulong of NGCP Southern Mindanao, said Agus 1 and Agus 2 hydropower plants remained disconnected to the grid as repair works have been hampered by the refusal of a landowner to allow the entry of field personnel to work on bombed steel tower in Lanao del Sur.

Capulong said the regulating reserves were at only 45 megawatts as of 6 pm Jan. 1 due to the isolation of Agus 1 and 2 hydroelectric power plants.

The generation plants, with a combined maximum capacity of 150 mw, were disconnected from the grid due to the bombing of Tower 25 along Agus 2 – Kibawe 138-kv line in Ramain, Lanao del Sur last Christmas Eve.

“Restoration was halted due to failed negotiation with landowner of the property where the facility is located. The owner refused NGCP entry to repair the toppled tower alleging that government failed to pay his claims long ago,” Capulong said.

She said NGCP expects the supply situation to worsen.

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