Citicore Energy Solutions Inc. (CESI), the power retailing business arm of Filipino firm Citicore Renewable Energy Corporation (CREC), has renewed five of its power supply agreements (PSAs) that are falling due this year.
The renewed power supply deals that are under the ambit of Retail Competition and Open Access (RCOA) policy, had been firmed up with long-time partners Bench Tower (through Ground18), Citystate Condominium, Eastfield, Succeed Ventures Asia, and Prince Alumer Development Corporation.
According to CREC, the supply contracts had been extended for another two years and these account for aggregate capacity of 5.1 megawatts. “The contracted capacity is 16-percent of the company’s clients whose contracts are expiring this 2022,” the company stressed.
Within the RCOA regime of the restructured electricity sector, contestable customers within the prescribed threshold of 500 kilowatts (kW) and up can now directly negotiate for a price as well as volume and then sign up for contracts with their preferred retail electricity suppliers (RES).
“RCOA makes contestable customers the ultimate decision-maker for their power supply requirements. By directly transacting with power generation companies, these customers can freely choose their suppliers of electricity, who can offer the most competitive price and best service suitable to their needs,” CREC expounded.
As emphasized by CREC President and CEO Oliver Tan, the contract renewal of their off-takers (capacity buyers) is a manifestation of “the continued trust and support of our customers in the product we offer and service we provide, allowing us to achieve 100% of our target as early as the first quarter of 2022.”
He further indicated “we expect to continue this long-term collaboration with our existing customers and also look forward to forming new ones.”
Beyond the renewed contracts, CREC similarly reported that it cornered a new PSA with Clear Water Ice Plant, a cold storage facility in Mandaue, Cebu and the deal was sealed under the government-sanctioned Green Energy Option Program (GEOP), or the sphere of power supply contracting that gives preference to renewable energy (RE) as a supply source.
Under GEOP, the usage threshold for qualified customers has also been set lower at 100 kWs
and the clients shall likewise be served by their chosen retail electricity supplier/s.
“GEOP helps interested customers transition to RE, with a commitment of green energy supply, by allowing end-users to choose their RE resources as their sources of energy,” CREC reiterated.
Tan thus noted that they are open to “welcome partners from different businesses and industries who are willing and ready to shift to green energy solutions and share with us the goal of achieving a net-zero carbon future.”
He added “by educating and encouraging more end-users to change their lifestyles, we can build a critical mass of RE advocates and promote a sustainable co-existence between the different stakeholders – such as RE suppliers, business partners, consumers – and the environment.”
The power supply deals cornered by CREC are also being tied to the viability of its real estate investment trust-listed affiliate Citicore Energy REIT Corporation (CREIT) – primarily on the REIT firm’s ability to “secure long-term offtake agreements from reputable customers of lessees.”