22 October 2012 in InterAksyon.com
Chinese firm to build Global Green's biomass power plant
Global Green Power PLC Corp. has tapped First Northeast Electric Power Engineering Co. of China to put up its biomass power generating plant in Panay Island.
Maribeth de Montaigne, president of Global Green subsidiary Green Power Panay Philippines Inc., said the company has signed a deal with NEPC for the engineering procurement and construction requirements of two 17.5-megawatt biomass plants in in the municipality of Mina, Iloilo.
"NEPC is a well known brand name in China’s power construction industry. It is one of the largest scale, best capable construction enterprises incorporating both civil construction, design and erection work," she said.
The first stage of the EPC contract will be land preparation, civil engineering and detailed engineering design. Mobilization for this stage of the project will commence in November, with site work starting in December.
The biomass project, which is estimated to cost P4.7 billion, is targeted for completion by the first quarter of 2015.
The generating facility will use agricultural and food processing waste such as rice straw, sugar cane and rice husks that usually are burnt or left to rot in the field.
Although the biomass plan will be eligible for feed-in-tariff incentive, the company's average rates, as agreed upon with distribution utilities in Panay Island, will still be lower by an estimated 16 percent than prevailing electricity prices in the region, said de Montaigne.
"As both the FIT and the power purchase agreements executed with the electric cooperatives do not have fuel pass through costs to consumers, and that GPPPI biomass fuel rate increases are based on Philippines consumer price index, this will ensure that cheaper electricity is not only provided now, but also over the next 20-year term of the FIT and 25-year term of the PPAs," she added.
Besides the Panay plant, Global Green has also submitted plans to the Department of Energy for additional biomass facilities in Luzon and Mindanao in line with its target to develop 360 megawatts of power generation capacity over the next six years.