EDC signs long-term geothermal PPA in the Philippines
Drilling rig of EDC in the Philippines (source: EDC)
Francisco Rojas
8 Sep 2014
GCGI, a subsidiary of EDC and CAPELCO signed an amendment in the Philippines to their Power Supply Agreement extending the existing contract until December 2040.
Green Core Geothermal Inc. (GCGI), a subsidiary of geothermal leader Energy Development Corporation (EDC), and the Capiz Electric Cooperative, Inc. (CAPELCO) signed an amendment to their Power Supply Agreement (PSA) extending the existing contract until December 2040. GCGI and CAPELCO agreed on a new price pursuant to the re-pricing provisions and market- based price structure in their original ten-year PSA, which was signed in August 2010.
Based on the amended PSA, GCGI reduced its price in 2015 by approximately P0.30 per kilowatt-hour. CAPELCO has saved for its member consumers PhP 140 Million annually in generation charges. GCGI and CAPELCO agreed on a new price pursuant to the re-pricing provisions and market-based price structure in their original ten-year PSA, which was signed in August 2010 and has been extended until December 2040.
GCGI President Richard Tantoco said that GCGI’s price structure gives CAPELCO the benefit of stable and predictable prices. “With power supply in Panay coming from imported fossil-fuel based sources, GCGI effectively helps CAPELCO minimize their risk from unpredictable foreign exchange rate fluctuations and volatile global fuel price movements. This is a GCGI in the amended contract also agreed to increase supply from 12 MW up to 15 MW of power for one year starting September 2014 to September 2015, and up to 18 MW starting September 2015 until December 2040.
GCGI in the amended contract also agreed to increase supply from 12 MW up to 15 MW of power for one year starting September 2014 to September 2015, and up to 18 MW starting September 2015 until December 2040.
“We are delighted that CAPELCO and GCGI have mutually decided to move forward with the partnership. More than just being business partners, we now consider our relationship as having gone to the next level. We assure CAPELCO that we will continue to provide clean, reliable, and competitively priced power with utmost dedication. We will continue to give customized energy solutions, fair pricing, competent technical assistance, and dedicated and responsive customer support at all times,” Tantoco said.
For his part, Edgar Diaz, CAPELCO general manager, expressed satisfaction over the new agreement: “CAPELCO was very pleased with the results of the re-pricing endeavors with GCGI given that its benefits will be directly felt by our member consumers. In CAPELCO’s experience, GCGI has been a reliable power supplier which offers very competitive rates. We look forward to more years of partnership with GCGI, in line with our commitment to provide adequate, affordable and quality electric services to our member-consumers.”
GCGI operates the 112.5-MW Tongonan geothermal plant in Leyte and the 192.5-MW Palinpinon geothermal plants in Negros Oriental.
CAPELCO is one of the electric cooperatives in Panay and supplies power to 17 cities and municipalities in Capiz.
Source: Press Release by EDC
