EDC signs new small PPA for its Leyte geothermal plant contract
Leyte geothermal plant, Philippines (source: video snapshot, CNN Money)
Alexander Richter
14 Oct 2015
Unified Leyte Geothermal Energy Inc. (EDC) and local utility VECO seek regulatory approval for a 5 MW power purchase agreement.
Reported from the Philippines, VECO and Unified Leyte Geothermal Energy, Inc. (ULGEI) have sought regulatory approval for a power supply agreement (PSA).
“Under the deal, ULGEI should sell and deliver 5 megawatts (MW) of power from ULGEI’s geothermal power plant. EDC’s subsidiary was earlier named as an independent power producer administrator for the power plant’s 40-MW contracted capacity. The PSA will have a period of seven years, the order stated.
The contract further provides that VECO should pay a generation payment rate of P4.6629 (~ $0.10) per kilowatt-hour (/kWh) for the power supply every billing month.
The rate, however, may be adjusted to reflect several factors used in its computation such as the foreign exchange rate, US price index for capital equipment, and consumer price indices in the US and National Capital Region.
On top of the generation rate, there should also be an administration fee equivalent to P0.32/kWh, which is subject to annual inflation movements.
VECO is a local utility that services the municipalities of San Fernando, Minglanilla, Consolacion and Liloan; as well as the cities of Naga, Talisay, Cebu and Mandaue — all in the province of Cebu. Besides ULGEI, VECO also tapped a unit of Semirara Mining and Power Corp. to supply 50 MW of its electricity needs. This will come from Southwest Luzon Power Generation Corp.”
Source: Business World Online
