22 December 2008 in Sun Star
2 RE biomass plants to be put up in Panay
TWO major renewable energy (RE) biomass plants in the Visayas will soon be constructed by a UK-based firm to address the looming power supply shortage in the region by 2010.
Green Power Panay Philippines Inc. (GPPPI), an affiliate company of UK firm Global Green Power PLC, has signed a series of electricity supply agreements (ESA) in Panay.
The investment for the two projects is about P9.3 billion.
This is the first renewable energy ESA signed on the same day that President Gloria Macapagal-Arroyo signed the RE bill into law on December 16.
"We signed agreements with Iloilo Electric Cooperatives (Ilecos) I and II on December 16 and December 17, respectively. The signing of the ESAs will kick off our RE 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," said Global Green Power chief executive officer David de Montaigne.
The 25-year ESA's were awarded to GPPPI after their participation in the competitive Request for Offers implemented by the Panay-Guimaras Power Supply Consortium led by its president Fred Villanueva.
GPPPI will put up two 18-megawatt biomass power plants in Panay with an estimated construction cost of US$40 million each.
The first plant will be "embedded" within the Ileco II area and is targeted for completion in January 2011 followed by the second plant several months later.
"We are very thankful for the Department of Energy (DOE), especially Secretary Angelo Reyes and Undersecretary Ramon Santos, and officials of the Consortium for supporting renewable energy projects as clean and cost efficient alternatives to fossil fuels," de Montaigne said.
The DOE earlier said electricity demand is projected to grow at an annual rate of 4.4 percent in the next 10 years covering 2008 up to 2017.
Electricity demand for the Visayas is estimated at 500 megawatt (MW), 600MW for Mindanao, and 3,000 MW for Luzon.
Albert Dalusung III, Global Green Power chief technical officer, noted that "the plants will be built to European and international emission standards and will spur economic development through their delivery of consistent, cost efficient, and reliable energy to industry and the Ilonggo community."
"Our renewable energy projects will also ensure the optimization of Clean Development Mechanism for the Philippines," he said.
Each project, Dalusung added, is expected to deliver P200 million to the local community where the plants are located during the first year of its operations and P9.3 billion each over the 25-year contract period.
"The P9.3 billion is the estimated economic benefit of each project which delivers significant social benefits to the local community. The plants will also help mitigate climate change through collection and utilization of agricultural waste and development of sustainable forestry," he said.