Green Core Geothermal seen as providing energy security to Negros
Electric utilities on Negros Island, Philippines, are urged to sign-up with Green Core Geothermal (EDC) for reliable electricity for their customers. Current price of 10-year PPA for 25MW is around US$11cents/ kWh)
Reported from the Philippines, “Ephraim Taclob, general manager of the Negros Oriental Electric Cooperative 2, is asking the four other power firms in Negros Island to sign up with the Green Core Geothermal Inc. for reliable electricity for their consumers.
Noreco 2 and GCGI, a subsidiary of geothermal giant Energy Development Corporation, will sign a contract in December for a 10-year lock-in period for a 25 MW base load power supply to the electric cooperative.
Taclob said buying power from Green Core at Php 4.70 (about US$ 11cents) per kilowatt hour is worth the contract considering the widespread power deficit in the Visayas grid that is resulting in frequent brownouts.”
Source: Visayan Daily Star
Only Noreco 2 has inked a power supply agreement with Green Core as the four other Negros electric cooperatives are still negotiating over the selling rate saying that the P4.70/kwh offer of Green Core is “high” compared to the rates of other independent power producers.
The four are the Negros Oriental Electric Cooperative 1 in Negros Oriental and the Victorias-Manapla-Cadiz Electric Service Cooperative, Central Negros Electric Cooperative, Negros Occidental Electric Cooperative in Negros Occidental.
GCGI officials claim that they are actually selling power at a cheaper price because geothermal energy is VAT-free and due to the proximity of the source at the Palinpinon power plants in Valencia, Negros Oriental, transmission costs and power losses will be fewer.
Earlier, businessmen and residents in Dumaguete had said they would not mind a slight increase in power rates as long as the adjustment is practical and that Noreco 2 can deliver a robust and less frequently interrupted power supply to the commercial and residential establishments.”