News

Green Core Geothermal (EDC) signs 10-year PPA in Capiz

Tongonan, Leyte Geothermal power plant, Philippines
Alexander Richter 26 Aug 2010

Green Core Geothermal, subsidiary of EDC, signs 10-year PPA with cities and municipalities in Capiz, Philippines, supplying 12MW capacity from its Leyte and Negros Oriental plants.

In news from the Philippines it is said that “Green Core Geothermal, Inc., a subsidiary of geothermal leader Energy Development Corp. (EDC), has signed a 10-year agreement to provide electricity to 17 cities and municipalities in Capiz.

Under the power supply agreement with Capiz Electric Cooperative (Capelco), Green Core said it will supply Capiz with 12 megawatts (MW) of power coming from its geothermal plants in Leyte and Negros Oriental.

“We’re very happy with this deal primarily because of the low rates of geothermal compared with other sources. It’s good that we get 70 percent of our supply from Green Core’s geothermal plants and only 30 percent from more expensive sources,” said Capelco general manager Edgar Diaz.

“We are able to provide both our residential and industrial customers with clean, stable and affordable power,” Diaz said in a statement.

EDC president and COO Richard B. Tantoco meanwhile reiterated that the pricing of indigenous renewable energy resource such as geothermal is not only independent of any indexation to movements in global energy indices but is also VAT (value added tax) zero rated.

“Hence, our rates are cheaper compared to those offered by coal and diesel-fired power plants,” Tantoco further noted.

This is also the reason cited by the other electric cooperatives, which also has existing power supply agreements with Green Core. Early this year, Green Core has sealed long-term power supply deals with the Aklan Electric Cooperative (Akelco) and Iloilo Electric Cooperative (Ileco 1).

Green Core operates the 112.5-MW Tongonan geothermal plant in Leyte and the 192.5-MW Palinpinon geothermal plants in Negros Oriental.”

Source: Business Inquirer