25 December 2008 in The Manila Times
Global Green, Panay Island distributor
sign long-term power supply deals
GLOBAL Green Power PLC of Britain is set to kick off its renewable energy projects in the Philippines after inking long-term supply contracts with distributors.
David de Montaigne, Global Green chief executive officer, said the company, through its affiliate, Green Power Panay Philippines Inc. (GPPI), signed agreements with Iloilo Electric Cooperative (ILECO) I and II on December 16 and December 17, respectively, for 25-year electricity supply agreements in Panay.
“The signing of the [agreements] will kick-off our [renewable energy] projects in the Philippines and we are very proud that our contracts are the first to be awarded after the Renewable Energy bill was passed,” he said. Signed into law last week after languishing in Congress for two decades, the bill provides a generous package of fiscal and non-fiscal incentives for “green” energy projects.
Global Green bagged the supply agreements after electric cooperatives on Panay Island had organized the Panay-Guimaras Power Supply Consortium and bid out their power requirements.
The island had suffered from slim power reserves because it is located at the tail end of the power supply chain in the Visayas.
GPPPI will put up two 18-megawatt biomass power plants in Panay with an estimated construction cost of $40 million each.
The first plant would be “embedded” within ILECO II’s franchise area and is targeted for completion by January 2011 followed by the second plant several months later.
Albert Dalusung 3rd, Global Green chief technical officer, said the plants would be built according to European and international emission standards.
The construction of the plants “will spur economic development through their delivery of consistent, cost efficient and reliable energy to industry and the Ilonggo community,” he said.
Each project is expected to deliver P200 million to the local community where the plants are located during the first year of its operations and P9.30 billion each over the 25-year contract period.
“The plants will also help mitigate climate change through collection and utilization of agricultural waste and development of sustainable forestry,” De Montaigne said.