Solana Solar Alpha Inc. (Solana Solar), a subsidiary of renewable energy firm Alternergy, has inked a 20-year power supply agreement (PSA) with Peninsula Electric Cooperative Inc. (PENELCO) for the off-take of the generated electricity from the former's 10-megawatt solar power project to be sited in Hermosa, Bataan.
According to Gerry P. Magbanua, president of Alternergy and director of Solana Solar, the power supply pact with PENELCO will enable the utility firm to have a long-lasting source of its power supply that will be coming from a green energy source.
He said it will be a transformative shift on the part of the power utility firm, because
“historically and to date, PENELCO’s supply mix is dominated by coal supply which is exposed to fuel price increases.”
As calculated, the offtake agreement will allow PENELCO to generate savings of up to P90 million by procuring a fraction of its power supply from the Solana solar farm installation.
It was emphasized that “as a renewable power supply, the Solana solar project will provide a competitively-priced electricity to PENELCO with no fuel charges over the 20-year contract period. “
Magbanua asserted “the renewable power from the Solana solar project will reduce PENELCO’s dependence on power supply using imported fossil fuels.” PENELCO has been rated by the National Electrification Administration (NEA) as one of the country’s top performing electric cooperatives.
PENELCO General Manager Loreto Marcelino emphasized that “the Solana solar project is a positive move to diversify PENELCO’s supply sources and meet our compliance with the mandated Renewable Portfolio Standards (RPS).”
RPS is a policy instituted by the government mandating distribution utilities to source prescribed percentage of their supply portfolio from RE-generated capacities; that in turn, will be providing alternative market to the electricity output of the RE developers.
The Solana solar facility, PENELCO noted, is embedded power generation within its franchise area, hence, this could “yield savings to its consumers through avoided transmission fees and zero-VAT (value added tax) on the purchased power.”
By far, the Marcos administration is championing renewable energy as the ultimate technology that will galvanize the country on to its ‘energy transition’ track; and will likewise underpin the mid-century ‘net zero’ goals of many corporates, organizations and other segment of end-users.