Icelandic owned Envent announces signing of PPA in the Philippines
Alexander Richter
10 Jun 2009
Envent, a geothermal developer in the Philippines, co-owned by Icelandic Geysir Green Energy and Reykjavik Energy Invest (REI), announced the signing of a Power Purchase Agreement (PPA) with the Biliran Electric Cooperative (BILECO) for about 8,600 MWh per year of clean, renewable electricity at a levelized price of $94 per MWh.
As reported by the company, Envent, a geothermal developer in the Philippines, co-owned by Icelandic Geysir Green Energy and Reykjavik Energy Invest (REI), “today announced the signing of a Power Purchase Agreement (PPA) with the Biliran Electric Cooperative (BILECO) for about 8,600 MWh per year of clean, renewable electricity at a levelized price of $94 per MWh. The total value over the 10-year term is about USD 47 million. The baseload electricity will come from Envent’s 50 MW Biliran Unit 1 geothermal power plant, which is scheduled to come online in 2012 on the Biliran Island in the Philippines.
The agreement is the first in a line of PPAs to be executed with several electric cooperatives in the Leyte region. This agreement commits about 10 percent of capability of the Unit 1 geothermal power plant. The remaining capacity is 45 MW. Envent expects to enter into additional PPAs for a total value of USD 515 million in the coming months.
Envent’s Biliran Unit 1 project is located on the island of Biliran in the Eastern Visayas region of the Philippines. Biliran, which has a good connection to the national power grid, lies just a few kilometers north of the island of Leyte. The upstream part of Envent’s Biliran Unit 1 project is being executed in collaboration with Biliran Geothermal Incorporated and several other local companies.
Envent is a renewable energy business dedicated to the exploration of geothermal resources in the Philippines as well as to the development of geothermal power plants in the region. Envent’s majority owner is Geysir Green Energy; Reykjavik Energy Invest is a co-shareholder. Both companies are based in Iceland.”
The company’s CEO, Mr. Gudmundur F. Sigurjonsson, states that: “The execution of this PPA reflects the good spirit of cooperation between Envent and the local electric cooperatives in the Leyte area. This is a significant milestone in the development of our Biliran Unit 1 project and an important steppingstone as the corporation moves forward with its plans. Parallel to working on completing more PPAs we will be working on the financial structure of the project, which we expect will take between 6 and 12 months.”
Source: Company announcement via Marketwire
