Energy and Power Generation. – The Bangsamoro Government shall promote investments in the energy and power generation sector, domestic and international, public and private, in the power sector industry in the Bangsamoro Autonomous Region: Provided, That it shall as far as practicable, promote low carbon sustainable power generation in the Bangsamoro Autonomous Region consistent with sustainable development goals and sustainable power generation policies provided in this Organic Law: Provided, further, That the Bangsamoro Government shall notify the National Government insofar as power generation investments are concerned.
(a) Power Generation and Distribution Utilities Operating Exclusively in the Bangsamoro Autonomous Region. The Bangsamoro Government shall have the authority to build power generation and distribution utilities operating exclusively in the Bangsamoro Autonomous Region through the Ministry of Energy it shall create: Provided, That the Bangsamoro Government shall divest its ownership of the utilities twenty-five (25) years after their creation. It shall promote investments, domestic and international, in the power sector industry in the Bangsamoro Autonomous Region.
Consistent with sustainable development goals and low carbon sustainable power generation policies to reduce costs associated with transmission including line losses and network investment, distributed power generation shall be aggressively promoted as part of the Bangsamoro Government’s power development plan. Power generation plants and distribution utilities operating exclusively in the Bangsamoro Autonomous Region shall be able to interconnect, sell, and buy power over the national transmission grid subject to limitations under Republic Act No. 9136, otherwise known as the “Electric Power Industry Reform Act of 2001.” In the same way, transmission lines operating exclusively in the Bangsamoro Autonomous Region shall be able to connect to the national transmission grid. Such power plants and distribution networks may only sell power over the national transmission grid once the power supply needs of its customer have been completely met. The Bangsamoro Government may assist electric cooperatives operating exclusively in the Bangsamoro Autonomous Region in accessing funds and technology to ensure their financial and operational viability. Assistance may be in the form of restructuring of debts, with rehabilitation and efficiency improvement measures based on a set of clear time-bound operational reform programs.
(b) Agus Hydropower Complex. – In the event of the privatization of the Agus Hydropower Complex, the Bangsamoro Government shall preferential rights to acquire the hydroelectric plants situated within its territorial jurisdiction. Nevertheless, the National Government and the Bangsamoro Government shall cooperate and coordinate through the Intergovernmental Energy Board insofar as the utilization of water from Lake Lanao for the Agus Hydropower Complex is concerned. This is without prejudice to the payment of the obligation of National Power Corporation or Power Sector Assets and Liabilities Management Corporation to the Autonomous Region in Muslim Mindanao which now accrues to the Bangsamoro Government.
