Yuchengco firm to invest P1.3 B for hybrid power in Palawan


By Myrna M. Velasco

A subsidiary of Yuchengco-owned PetroEnergy Resources Corporation (PERC) is prepping up for P1.1 to P1.3 billion worth of investments for planned 10 to 20-megawatt hybrid power generating system in Palawan.

The proposed project, once it takes off from blueprint, will be undertaken by the company’s subsidiary PetroGreen Energy Corporation, according to PERC Vice President Francisco G. Delfin Jr.

“It’s a project by PetroGreen where we intend to put up 10 to 20 megawatts of installed capacity of solar, then with a component of battery storage and diesel,” he expounded.

Delfin indicated though that there is just one major factor that they have yet to contend with relative to this planned venture – the power supply procurement decision of off-taker Palawan Electric Cooperative.

He stressed the company had already secured most of the permits and even the term sheet for the project’s financing – but everything has yet to depend on when PALECO undertakes its competitive selection process (CSP) for a power supply agreement.

“For Palawan, this is a service contract that we secured as early as 2017 and we have already secured many of the necessary government permits – LGU (local government unit) endorsements, ECC (environmental compliance certificate) clearances – but the only thing holding us back to proceed is of course the offtake,” Delfin said.

He qualified that the company can opt for either a phased or one-time development of the proposed facility that shall comprise ground-mounted photovoltaic (PV) solar with 2 to 4 megawat-hour (MWh) battery storage and diesel installation.

“It depends on ultimately what PALECO will set in the CSP, we can go with an initial 10 megawatts; but it really depends on the customer which is PALECO,” he said.

The Yuchengco firm executive further noted that the required land for the solar installation had already been secured; and the company had likewise completed the technical feasibility studies for the project.

“The diesel component will ensure the 24-hour availability of power; and the battery storage is for a size of 2 to 4 MWh just to address the fluctuations,”
he pointed out; adding that for consumers of Palawan, this will bring down their cost and at the same time provide them with round-the-clock electricity service.

+Until this point though, there is no set timeframe yet on when the Palawan power utility will conduct its CSP on a power supply deal for the targeted entry of new power suppliers in the island-grid.