Panay-Guimaras electric coops sign MOA with Panay Energy
As a precursor to the signing of Electricity Power Purchase Agreements (EPPAs), seven electric cooperatives under the Panay-Guimaras Power Supply Consortium (PGPSC) signed a Memorandum of Agreement with the Panay Energy Development Corporation (PEDC), a subsidiary of Global Business Power Corporation, Monday last week at Days Hotel, Iloilo City.
The seven cooperatives are: the Iloilo Electric Cooperatives (ILECO 1, 2 and 3), the Guimaras Electric Cooperative (GUIMELCO), the Capiz Electric Cooperative (CAPELCO), the Antique Electric Cooperative (ANTECO) and the Aklan Electric Cooperative (AKELCO).
Construction is on-going for PEDC’s 164-megawatt Clean Coal-Fired Power Plant in Brgy. Ingore, La Paz. Said power plant utilizes the latest circulating fluidized bed (CFB) boiler technology which ensures emission of commonly feared air pollutants at practically negligible levels (95% and higher efficiency in removing sulfur dioxide and practically zero nitrogen oxide) and capture of total solid particles at 99.9% efficiency.
Concurrent President for GBPC and PEDC Jesus N. Alcordo assured the electric cooperatives at the signing that, the use of such technology matched with PEDC’s intended massive tree planting efforts, is meant to pursue the campaign for cleaner transitional technology to address Panay’s electric power shortfall and its need for power reliability, stability and reasonably priced power, while renewable energy sources are being strengthened and identified. “We are here to help improve our economy first and foremost, to create more jobs and help Panay move forward with a clear sense of environmental management,” Alcordo said in a separate interview at the signing.
The project is estimated to cost over US$405 million with 82 megawatts available and on-line by September 30, 2010, and another 82 megawatts by December 30, 2010. A Php12-Billion peso-denominated loan, according to Alcordo, will ensure that electricity prices will “have more stability” reducing the exposure to foreign exchange volatility.
The MOA signing bodes well for both the generating company and the electric cooperatives according to Mr. Wilfredo Billena, General Manager of the Iloilo 1 Electric Cooperative, Inc. (ILECO-1). According to Billena, he is pleased that PEDC “accepted the challenge,” following a clamor for reliable power in Panay.
Billena further mentioned that it is because of the shortage of power in Panay that the spot market has not come into the area; that investments have not been fully encouraged; and that Panayanons have suffered rotating daily brownouts.
The 164-megawatt project of PEDC heralds a new era for electric cooperatives. Billena indicated that, with power reliability at hand, cooperatives can now focus on their campaign for lower systems loss with 13% as their target for 2010 towards better service for their patrons.
