Leading renewable energy (RE) firm Energy Development Corporation (EDC), a subsidiary of Lopez-led First Gen Corporation, will be supplying RE-generated electricity to Bohol province for the next 10 years.
In a statement to the media, EDC emphasized that it won the joint competitive selection process (CSP) carried out by the Bohol power distribution utilities (1BP) – and that will be the basis of the power supply agreements (PSAs) in meeting the island’s power needs from 2024 to 2033.
The entire Bohol province is served by three power distribution utilities – namely the Bohol I and II Electric Cooperatives and the Bohol Light Company Inc.
As calculated by EDC, the generation charge for its contract with the Bohol power utilities will be at approximately P4.70 per kilowatt hour (kWh) – and that will be the pass-on rate once the contract commences by January 2024.
“This is not only below 1BP’s price cap of P5.4089 per kWh, but is also well below the current blended generation rates of all three Bohol electric cooperatives,” the RE firm stressed.
EDC said “1BP’s power rate from the PSAs with EDC is fixed and subject only to Philippine consumer price index (CPI) escalation despite having diesel for its backup power,” emphasizing that “the agreed rate will prevail even if EDC supplies 1BP’s requirements through the in-land diesel plant in instances of grid isolation.”
Under the terms of the bidding, the Bohol power utilities solicited a “baseload power supply from a renewable energy source and an in-island backup power to ensure that Bohol will have a steady 24/7 supply of electricity even if it gets isolated from the grid.”
The company primarily cited the experience of Bohol in December last year – when it had to suffer prolonged blackouts after the island had been isolated from the grid by super typhoon Odette.
Among all the qualified bidders, it had been EDC’s offer that was declared a winning tender as it “met their requirements through the 50-83 megawatts (MW) of dependable power that it has committed to provide from its Unified Leyte geothermal power plant.”
In addition, the Lopez firm’s bid provided for an “accompanying backup power supply from an in-island 85.12MW diesel-fired power plant that EDC and its partner will be constructing in the province of Bohol.”
EDC noted that “upon completion of the diesel power plant, it will be the first time Bohol province will have a backup source to keep its industry, tourism and residential sectors supplied with electricity even if the connection to Leyte island is cut off.”