From Southern Perspective

CAGAYAN DE ORO CITY/ June 2, 2026 — A local company wants to upgrade and modernize the Agus-Pulangi Hydroelectric Complex to lower electricity bills and reduce Mindanao’s dependence on costly, polluting coal.

Greenergy Development Corporation’s plan, called Energy Storage Project: Nature’s Powerbank, is under review by the government-owned corporation Power Sector Assets and Liabilities Management, or PSALM. The goal: upgrade old hydro plants and operate them in tandem with solar power.

The project introduces two big ideas: Hybrid Economic Dispatch (HED) and Circular Energy for Hydroelectric Plant (CEHP). HED helps manage Lake Lanao’s water supply, especially during dry seasons. CEHP reuses the water from the turbines by pumping it back upstream with solar-powered pumps, then uses it again to generate electricity.

HED works like this: Lake Lanao powers six hydro plants along the Agus River in Lanao del Sur, Lanao del Norte, and Iligan City, and acts as a huge natural battery. Solar energy load centers to be located across Mindanao help “charge” the lake by reducing water use during the day. Then, at night, the stored water is released to generate electricity.

During the day, solar power takes the load, saving water in the lake. At night, that saved water is used to keep electricity flowing. This cycle helps keep Lake Lanao healthy, even in long droughts.

CEHP is about recycling water. After water generates power, solar pumps return about 20% of the water upstream. This clever trick adds around 100 megawatts—without building a new plant.

Keeping Lake Lanao at the right level is crucial. The sweet spot is 701–702 meters above sea level; below 699 meters, the environment and the Maranao communities around the lake become more at risk.

Affordable electricity is the goal. Both Agus-Pulangi and solar now cost about P3 per kilowatt-hour to produce—good news for consumers.

Mindanao needs stable, affordable, and clean power. Recent crises—from the pandemic to global conflicts—have made it urgent to find smarter energy solutions.

Since 2008, the Philippines’ use of renewables has dropped from 35% to 25%. Mindanao relied on hydropower for 70% of its energy, but that number has fallen to just 32%.

The Department of Energy is pushing to hit 35% renewables by 2030. Energy transition advocates in Mindanao hope to regain at least 50%. Notably, Mindanao only started depending on coal (now at 49%) in 2016.

Greenergy’s proposal would cost P35 billion. Another group—San Miguel Global Power with Sta. Clara International—would do it for P70 billion.

If Greenergy gets the job, power could be sold at P3.11 per kilowatt-hour. The pricier proposal would likely mean higher electricity prices.

The technology is available, and the numbers add up. So why not choose the option that best serves Mindanao’s power users?

Delays are risky. Without action, Mindanao could lose a significant share of its clean, affordable power—making the 2030 renewable energy goal much harder to achieve.