AP Renewables receives approval for 3-year PPA for Tiwi and Makban
The Philippine Energy Regulatory Commission has approved a 3-year power supply contract between AP Renewables Inc. (Aboitiz Power Corp.) and First Bay Power Corp., sourcing power from Tiwi and Makban geothermal power plants for a price of roughly 8.7 US cents/ kWh.
Reported yesterday from the Philippines, “The Energy Regulatory Commission (ERC) approved a three-year power supply contract between AP Renewables Inc. and First Bay Power Corp.
AP Renewables, a unit of the Aboitiz Power Corp., will be sourcing the power for Firs Bay from the Tiwi Geothermal Power Plant in Albay and the Makban Geothermal Power Plants in Laguna and Batangas.
Since acquiring the power plants, AP Renewables has been the assignee of the National Power Corp. (Napocor) contracts which includes First Bay. Two years ago, First Bay asked the ERC to extend the transition supply contract from Oct. 25, 2009 to Jan. 25, 2010.
When the contract expired, First Bay opened negotiations with AP Renewables for a bilateral power supply contract because AP Renewables rates were lower than existing Napocor rates.
AP Renewables sources its electricity from renewable energy sources, exempting them from the value-added tax.
In addition, AP Renewables’ line rental costs are lower because of its power plants’ proximity to First Bay’s franchise area, according to First Bay.
Batangas-based First Bay took over the operations of the Bauan Electric Light System which has a franchise from the National Electrification Administration to operate an electric system in Bauan, Batangas.
The franchise will expire Jan. 25, 2013.
The contract involves a contracted capacity of 37,084,000 kilowatt-hours (kWh) for the first year which began on Jan. 26, 2010.
First Bay’s requirements are expected to increase by 10 percent in 2011 and four percent by 2012.
The ERC approved an average generation rate of P3.77 per kWh (about 8.7 US cents/ kWh) for AP Renewables.”
Source: GMA News