Green Core Geothermal, Inc. (GCGI), a subsidiary of geothermal leader Energy
Development Corporation (EDC), will ensure that the provinces of Capiz, Iloilo and Aklan benefit from clean and affordable power for the next 12 years. The contract between GCGI and the Iloilo Electric Cooperative (ILECO 1), Aklan Electric Cooperative (AKELCO) and Capiz Electric Cooperative (CAPELCO) guarantee long-term power supply for both residential and industrial customers of the three cooperatives.
Based on the contracts, GCGI will supply AKELCO with 18 MW for 2010 and 10 MW from 2011 to 2020. AKELCO services 17 municipalities in Aklan and two municipalities in Antique. ILECO 1, on the other hand, is assured of 3 MW from 2010 to 2012 and 18 MW from 2012-2022. ILECO 1’s franchise areas cover 15 municipalities. CAPELCO, meanwhile, will get 12 MW for the next 10 years to energize 17 cities and municipalities in Capiz.
Power will come from the 112.5-MW Tongonan 1 in Leyte and 192.5-MW Palinpinon plants in Negros Oriental which GCGI won in a bidding by PSALM last year.
The officers of the three cooperatives are one in saying 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.
EDC President and COO Richard Tantoco reiterated that the pricing of indigenous renewable energy resource such as geothermal is not only independent of any indexation to movements in global energy indices but is also VAT zero rated.
Hence, ILECO 1 General Manager Wilfred Billena is confident that the contracts “will also result in lower power rates for us in Iloilo.” AKELCO General Manager Chito Peralta likewise expressed satisfaction with the agreement. “Getting power has always been a challenge for us because as you know, Aklan is located at the tip of the grid. Now Green Core will be able to augment the power supply of the province and encourage more tourists to visit Boracay.”
“We’re very glad to have ILECO 1, CAPELCO and AKELCO as partners in delivering cleanenergy to Iloilo and Aklan. EDC’s long-term contracts with them will support the growth needs of their respective provinces and 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.
Source: PSE Disclosure Sept 30, 2010
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