LISTED AboitizPower Corp. said on Tuesday that the Davao City government’s approval of its proposed 300 megawatt (MW) coal-fired power plant will provide for the city’s growing power requirements.

“We extend our profound appreciation to Vice Mayor Rodrigo Duterte and the 21 Councilors for their vote of confidence in us. We are indeed humbled by their decision,” said Erramon Aboitiz, AboitizPower chief executive.

He added that AboitizPower views this development as an affirmation of its belief that the 300-megawatt circulating fluidized-bed coal-fired power plant to be built is the most suitable facility for Davao City.

Aboitiz said the power plant answers both the city’s need for a power source that is equipped with proven capabilities to safeguard the health of people and the environment, and a dependable power source to fuel its progress and that of its citizenry.

He said the relatively lower cost of generating power from a coal-fired power plant will provide Davao City with relatively lower generation rates and will strengthen Davao City’s position as the most competitive city in Mindanao.

“We believe in harnessing energy from a right mix-portfolio to reliably address the power demand, evident by the operations of our hydroelectric and thermal power plants in the region,” he added.

Aboitiz also assured Mayor Sara Duterte that they will keep the development and operations of this plant at a level that measures up “to the stringent health, safety, and environmental protection standards that are expected of us.”

Bobby Orig, AboitizPower first vice president for Mindanao Affairs, earlier said they are proposing a coal-fired power plant in Davao to begin creating this right mix of energy sources.

To meet the power shortage problem in Mindanao before it becomes even worse, according to Orig, AboitizPower is proposing the construction of a 300-MW circulating fluidized bed (CFB) coal-fired power plant in southern Davao.

He added that projections by the DOE and other private sector agencies estimate that there will be a power shortage of 270-megawatt (MW) in Mindanao by 2012.

Orig added that even the new 300-MW Davao coal plant is still not enough to meet the 484 MW shortage projected in Mindanao by year 2014.

“There is still a need to build more power plants in the next few years,” he said.

According to the Department of Energy and other independent think tanks’ projections, power demand will exceed the supply in Mindanao as early as 2012—and the shortage will worsen if no power sources are added soon.

Mindanao’s heavy dependence on hydroelectric power is no longer enough to meet the needs of communities, businesses and industry.