ArchivesOctober 2010EDC to supply power to Panay

EDC to supply power to Panay

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Contrary to popular belief, power from the Palinpinon geothermal plant in Valencia no longer supplies electricity to the two electric cooperatives in Negros Oriental. Since the Philippine National Oil Company-EDC operations and the National Power Corporation power plant were privatized, Napocor, which had a contract to supply power to Noreco 1 and 2, had to look elsewhere for power. That meant getting power from faraway Tongonan, Leyte. At times, from its geothermal plants in Sorsogon.{{more}}

This setup has also brought some problems to Negros Oriental power consumers, like low voltage, which has been blamed for destroying several electrical appliances and electricity-run mechanical devices.

But Green Core Geothermal, Inc., the new operator of the Palinpinon Geothermal Plant, is in the thick of negoatiations with the two Norecos, seeking to bag a contract seeking to supply power to Negros Oriental before the Noreco contracts with Napocor end in December.

“We are sincerely hoping that Noreco 1 & 2 will also sign a Power Supply Agreement (PSA) with GCGI so we can begin supplying power to Dumaguete,” said Frances Ariola, corporate communications officer of the Energy Development Corporation, the parent company of Green Core. “The power we are offering to your cooperatives is the best option for Negros,” Ariola added in a statement to the Dumaguete MetroPost.

Both sides are locked on the issue of pricing. The two Norecos want to buy geothermal power at P3.50 per kilowatt-hour which Green Core is selling at P4.70.

For now, however, time is not on Noreco’s side. Green Core has been entering into PSAs with the provinces of Capiz, Iloilo and Aklan, who now stand to benefit from clean and affordable power for the next 12 years.

Power companies in Cebu are also reportedly waiting for Green Core’s decision to sell them whatever quantity they could get. But Ricky Tantoco, EDC president and COO, said they want to offer Negros Oriental consumers a chance to buy the power that is generated from their own province.

The three Panay provinces are getting a total of 40 MW from GGCI. The Palinpinon plant currently has a peak output of 192.5 MW.


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