Oriental Mindoro Electric Cooperative (ORMECO) has signed power supply agreements with seven independent producers for a 57-megawatt guaranteed dependable capacity, officials announced Tuesday, offering hope to residents who have endured years of chronic power shortages.

The agreements follow a successful bidding process where several companies won contracts to establish new power plants across Oriental Mindoro province, which has suffered from persistent blackouts and unstable electricity supply for more than a decade.

Mindoro island has been facing severe electricity problems, with residents experiencing daily rotating brownouts lasting from 8 to 12 hours.

The power crisis intensified in recent years due to aging infrastructure, insufficient generating capacity, and transmission constraints on the isolated grid system.

DMCI Power Corp. secured two contracts for baseload capacity totaling 15 megawatts in Calapan City. RMS Technology and Waste Management Corp. won a 14-megawatt support load contract for load-following and peaking operations in Pinamalayan municipality.

Other successful bidders include East Paramount Energy Corp. with a 10-megawatt contract in Bansud and Green Force Energy Corporation with an 11-megawatt contract in Roxas.

ORMIN POWER Inc. and Power Pioneer JW&D Corp. also secured portions of the total capacity, according to ORMECO General Manager Humphrey Dolor.

ORMECO is currently operating under an emergency power supply agreement implemented after the cancellation of a competitive selection process in 2023 for a 41-megawatt electricity supply, resulting in higher per kilowatt-hour rates.

The province’s power problems have been compounded by diesel dependence, which has kept electricity costs among the highest in the country.

The new 15-year power supply agreements will receive government subsidies throughout the contract period, potentially providing relief from high electricity bills for Mindoreño consumers who have been paying premium rates for unreliable service.

“The additional 57 megawatts is crucial to meet our electricity needs, especially during summer when consumption reaches 80 megawatts,” said Oriental Mindoro Governor Humerlito “Bonz” Dolor.

Officials expect electricity rates to decrease to around 7.39 pesos per kilowatt-hour once the agreements take effect in July 2025, down from current rates that often exceed 12 pesos per kilowatt-hour.

Governor Dolor, brother of the general manager, praised the electric cooperative for the successful bidding process and welcomed the energy companies’ investments in the province, which Mindoro business leaders hope will stimulate economic development that has been hampered by power instability.

File photo courtesy of Pixabay royalty stock free image.