(Dumaguete City, October 1, 2010) --- Three provinces in Visayas will benefit from clean and affordable power for the next 12 years after Green Core Geothermal, Inc. (GCGI), a subsidiary of Energy Development Corporation (EDC), signed a contract with three electric cooperatives.
GCGI assured clean and affordable power for the provinces Capiz, Iloilo and Aklan after it signed a contract with the Iloilo Electric Cooperative (ILECO I), Aklan Electric Cooperative (AKELCO) and Capiz Electric Cooperative (CAPELCO) guaranteeing both its residential and industrial of long-term power supply.
Based on the contracts, GCGI will supply AKELCO with 18 MW for 2010 and 10 MW from 2011 to 2020, while ILECO I is assured of 3 MW from 2010 to 2012 and 18 MW from 2012 to 2022.
Meanwhile, CAPELCO will get 12 MW for the next 10 years.
According to a statement from GCGI, the power will come from the 112.5MW Tongonan 1 in Leyte and 192.5-MW Palinpinon plants in Negros Oriental which GCGI won in a bidding by PSALM last year.
Officials from the three electric cooperatives reportedly agree that geothermal is the best option for them.
“We’re very happy with this deal primarily because of the low rates of geothermal compared with other sources. It’s good that we get 70 percent of our supply from GCGI’s geothermal plants and only 30 percent from more expensive sources. We are able to provide both our residential and industrial customers with clean, stable and affordable power,” CAPELCO general manager Edgar Diaz said.
ILECO 1 General Manager Wilfred Billena, on the other hand, is confident that the contracts “will also result in lower power rates for us in Iloilo.”
EDC President and Chief Operating Officer Richard Tantoco explained that the pricing of indigenous renewable energy resource such as geothermal in not only independent of any indexation to movements in global energy indices but is also VAT zero rated.
Tantoco said EDC’s long-term contracts with said cooperatives will support the growth needs of the respective provinces and their customers with clean, reliable and affordable power.
“Since the industry is leaning more towards clean energy, EDC, with its 34-year head start in the geothermal business, is well positioned to address the supply shortage in the Visayas grid,” Tantoco said. (PIA/Rachelle Nessia)
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