Philippines: Icelandic Envent signs 5 additional PPAs for Leyte projects
Envent Holding Philippines Inc., announces the signing of multiple Power Purchase Agreements (PPAs) with five electric cooperatives on Leyte island in the Philippines for 35 MW of clean, renewable electricity valued at up to USD340 million.
In a release by the company, “Envent Holding Philippines Inc., a major geothermal developer in the Philippines, today announced the signing of multiple Power Purchase Agreements (PPAs) with five electric cooperatives on Leyte island for 35 MW of clean, renewable electricity at a price between USD 100 and USD 113 per MWh. The value of the contracts over their 10-year term is between USD 300 million and USD 338 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 Visayas region of the Philippines.
The PPAs were executed with the following regional electric distribution cooperatives on the island of Leyte: Leyeco II, Leyeco 4, Leyeco 5, Dorelco and Soleco. The agreements follow the signing of an initial PPA last June, which committed 5 MW of the capability of the Unit 1 geothermal power plant. (See June 6, 2009, news release)
Together, the agreements with the six off-takers commit 40 MW of the Biliran plant’s capacity. The coops that signed the agreements handle more than 300,000 customer accounts, representing a population of about 1.9 million on Bilian and Leyte islands, which are connected by a bridge. The remaining 10 MW capacity will be offered to the six off-takers , and a portion left for the upcoming Wholesale Electricity Spot Market (WESM) in the Visayas region.
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 Envent’s Biliran Unit 1 project is being executed in collaboration with Biliran Geothermal Incorporated and several other local companies.
Mr. Gudmundur F. Sigurjonsson, Chief Executive Officer, Envent comments, that “The execution of those PPAs is a major milestone for the project as the revenue portion of the plant is now mostly taken care of. The negotiation process with the electricity coops was extremely pleasant and we are pleased with the professionalism and business acumen of our local partners. We are now working on the financial structure of the project, which we expect will take between 5 to 10 months to complete.”
Source: Company announcement