EDC informs of temporary shut down of Northern Negros plant for testing
Northern Negros Geothermal Field of EDC, Philippines (source: EDC)
Alexander Richter
10 Jun 2011
Energy Development Corp. (EDC) informs officials that their Northern Negros Geothermal Power Plan tin Mailum, Bago City, Philippines will be shut down in July for further resource studies, as it only produces a fraction of planned capacity.
Reported yesterday from the Philippines, “Energy Development Corp. officials informed the Negros Occidental Sangguniang Panlalalwigan that their Northern Negros Geothermal Power Plant in Mailum, Bago City, will be shutting down again in July for further resource study.
The P8 billion NNGPP that was originally envisioned to produce 49 megawatts only produces 8 to 9 megawatts of geothermal power, which it sells to the IloiloElectric Cooperative at P4.72 per kilowatt hour, they said.
EDC temporarily shut down the plant in November 2010 toconduct more technical tests and when it resumed operations in April this year, the firm announced that it would be for a limited period of three months.
DwightMaxino, vice presidentfor steam field operations of EDC’sNorthern Negros geothermal project, toldNegros Occidental Sanggunian members led by Vice Governor Genaro Alvarez ata hearing at the provincialCapitol in Bacolod City that the NNGPP will shut down in the first week of July so they can further determine where geothermal resources are within their bounds.
Environmentalist have protested EDC’s entry into the Mt. Kanlaon Natural Park (MKNP) buffer zone saying it has resulted in the cutting of trees and affected the rich biodiversity in the area.
They have also expressed fear that, with the firm’s failure to generate enough geothermal steam to meet its targets, it would further encroach into MKNP.
But Maxino yesterday saidtheir firm would not go beyond the buffer zone in search of geothermal power.
“EDC will know by December how much power the geothermal plant will be able to produce,we do not have any figure at present,” he also said.
But he said it does not appear that they can meet their original 40 megawatt target.
Maxino denied that they have wasted government money by failing to produce their targeted power.
The loans sought to build the plant were paid for by the Philippine National Oil Co.-Energy Development Corp., a government controlled corporation then, and not by thegovernment, he said.
He said if ever the NNGPP is able to produce at least 30 megawatts, they will have to sell 12 megawattsto ILECO since they have a contract with it until Dec. 25, 2012.
We will make the rest of NNGPP power available to Negros Occidental cooperatives if they want to buy it, he added.
Manolo Candelaria, deputy manager for the sales department of EDC, said they were originally expecting to produce 49 megawatts at the NNGPP and are losing money with a production of only 8 to 9 megawatts.
When they determine at the end of the year how much power NNGPP can produce, they will know what direction to take, he said, when asked if they foresee generating enough power to keep the plant operating.
Negros Occidental Board Member Emilio Yulo said that for EDCs to attempt to go beyond thebuffer zone in search for geothermal team isnot a remote possibility, they may resort to asking for a national permit.
He said that, because of NNGPP’s failure to produce the power it promised, Negros Occidental has not received expected royalties from its operations and power security.
But he said the firm has kept its commitment as far as reforestation and corporate social responsibility, are concerned.”
Source: Visayan Daily Star
