1 February 2011 in Business Mirror
Green Power committed to build biomass facility
GREEN Power Panay Philippines Inc. (GPPPI), a unit of renewable-energy firm Global Green Power Plc. Corp., said in a statement that it is committed to proceed with its planned 17.5-megawatt (MW) biomass power plant in Mina, Iloilo, to help address the power shortage in Panay and the Visayas grid.
The Energy Regulatory Commission (ERC) has set the public hearings next month for GPPPI’s P2.6-billion biomass plant whose capacity is potentially expandable to 35 MW.
The ERC set the hearings for the Electricity Supply Agreements (ESAs) signed by GPPPI and the Iloilo Electric Cooperatives I and II (Ileco I and Ileco II).
GPPPI said it endeavors to complete the plant at the soonest possible time “in order to help alleviate the power shortage in Panay and its adverse effects on the local economy.” It urged the ERC to expedite the approval of the sales agreements to greatly benefit the consumers of Ileco I and II and the local economy. GPPPI will deliver decentralized, clean and renewable energy that provides an estimated 1,700 jobs to the local community; 7,000 people out of poverty; and P17-billion revenue to the local community through the purchase of agricultural waste and ancillary services over the 25-year life of the ESAs.
The biomass power plant will also deliver energy security to the Philippines through the displacement of some $1.5 billion of diesel purchases over the 25-year life of the lease. These estimates will be doubled upon the expansion of the GPPPI facility to 35 MW.
“The Global Green Power biomass solution is critically important to the nation’s energy security as the price of oil once again edges toward $100 per barrel and with political unrest within the Middle East increasing. Our company looks forward to supporting Energy Secretary [Jose Rene D.] Almendras and his team as the Philippines takes leadership within Asean developing sustainable energy solutions,” Maribeth de Montaigne, president of the company, stated.
GPPPI and the electric cooperatives executed the ESAs in December 2008 whereby the renewable-energy firm will supply and the cooperatives will purchase electricity for their power needs.
The ERC set the hearing for Ileco I at 9 a.m. on February 17, at the cooperative’s main office in Tigbauan, Iloilo. The hearing for Ileco II will be held 9 a.m. on February 18 at the cooperative’s main office in barangay Cauayan, Pototan, Iloilo.
GPPPI will supply Ileco I with 3 MW of electricity and Ileco II with 7 MW of electricity at a contracted base rate of P 5.90 per kilowatt-hour. The passing of the Renewable Energy Act and the implementation of the feed-in tariff mechanism will facilitate an overall blended power rate for GPPPI that underpins the power plant’s financially viable operations.
GPPPI will build the biomass plant in Mina, Iloilo, within the franchise area of Ileco II.
The GPPPI statement said the plant will utilize proven multifuel-combustion technology which provides utmost flexibility in fuel sourcing and will be equipped with proven biomass combustion equipment using a high-pressure steam boiler and an efficient full-condensing steam turbine. The technology is already delivering in excess of 500 MW of base load, biomass power in Europe and China, according to GPPPI executives.
The biomass power plant will utilize agricultural waste from key crops grown within Panay such as corn and rice straw, and sugar cane waste that are currently either burnt in the fields or left to rot, causing carbon dioxide and methane to contribute significantly toward global warming and climate change.