Panay electric cooperatives ink deal for biomass power
Officials of Antique Electric Cooperative
(from left) General Manager Ludovico
Lim and President Efren Esclavilla sign
the power supply agreement with Asea
One Power Corp. (AOPC) officials
President / CEO Paul Rodriguez and Vice
Pres. for Finance Ernesto Tan.
Panay Island will soon host the country's first commercial production of energy coming from rice stalks, husks and other agricultural wastes in a boost to the usage of renewable sources of energy to address the critical power supply of Western Visayas.
The Asia independent power producer Asea One Power Corp. (AOPC) yesterday announced that it will invest in a P3-billion project to put up power plants on Panay and Guimaras producing a total of 25 megawatts by converting wastes to energy.
AOPC President and Chief Executive Officer Paul Rodriguez said they aim to start commercial production by January 2011 from the seven plants in the provinces of Iloilo, Capiz, Antique, Aklan and Guimaras.
"Our vision is for a clean and green Panay and Guimaras Island within the framework of the region's available indigenous resources of biomass feedstocks," Rodriguez said in a speech during the the signing of the Power Supply Agreement between AOPC and electric cooperatives in Panay and Guimaras.
He made the announcement days after President Macapagal Arroyo signed the Renewable Energy Act which is aimed in boosting the tapping of renewable sources of energy and veer away from fossil fuels which are being blamed for the increased emissions of carbon dioxide and other toxic chemicals.
Rodriguez said their plants, with individual capacities ranging from 2.5 to 5 MW, will provide additional baseload supply to the Panay-Guimaras Power Supply Consortium. This includes the Iloilo Electric Cooperative (Ileco) I, Ileco II, Ileco III, Capiz Electric Cooperative (Capelco), Aklan Electric Cooperative (Akelco), Antique Electric Cooperative (Anteco) and Guimaras Electric Cooperative (Guimelco).
The plants will produce energy from rice stalks, rice husks and wood chips such as sibucao and madre de cacao (Gliricidia), bagasse from muscovado and coconut husks.
While there are already existing plants producing power from agricultural wastes, these are not for commercial use, according to Rodriguez.
The plants will be constructed on an "embedded or distributed system," which means they will be built close to and integrated with sub-stations of electric cooperatives.
The system would do away with inter-connection to transmission lines of the National Transmission Corp. (Transco).
Rodriguez said this would mean a lower electric rate by P1.51 per kwh because of the removal of transmission or wheeling charges.
Among the areas being eyed for the plants are the towns of Pavia, Pototan and Sara in Iloilo and the capital town of Jordan in Guimaras.
The plants are expected to consume an estimated 48,000 to 50,000 metric tons of rice husks alone each year.
These will be sourced all over Panay Island, one of the country's biggest producer of palay.
"We intend to use local resources. There is more than enough," said Rodriguez in an interview.
Aside from producing cheaper power, the plants are expected to help provide additional income to rice farmers by selling rice stalks and millers through the sale of rice husks. Muscovado millers will also benefit by selling their bagasse.
AOPC intends to purchase the rice husks at P500 per ton.
Rodriguez said the construction of the plants will be completed in 18 months after the project will commence upon approval of the Energy Regulatory Commission.
He said the project is their contribution to address global warming and climate change while ensuring the power needs of the region.
The AOPC project is among those identified during the recent Western Visayas Renewable Energy Congress.
Meanwhile, The News Today received a press release late afternoon yesterday from Panay Power Corporation (PPC) which supplies power to Panay Electric Company (Peco) that they will cut electricity cost by 18 percent starting this billing period.
The press release signed by Gil Altamira, Commercial Manager of Global Business Power Corp., owner of PPC, said that the reduction in rate is due to PPC's reduced fuel cost.