The Dupinga Mini Hydropower Corporation (DMHC), a subsidiary of Filipino firm Alternergy, will be supplying 4.6 megawatts of generated electricity to the Nueva Ecija Electric Cooperative II – Area 2 (NEECO II-Area 2).
Following the signing of the power supply agreement (PSA), DMHC announced that a joint filing with the electric cooperative will have to be carried out for them to secure the approval of the Energy Regulatory Commission (ERC) on the PSA.
According to DMHC Vice President Annette Rafael, “the signing of the PSA and its subsequent submission to the ERC for approval is one of last milestones successfully achieved to date in the development of the Dupinga project.”
So far, this is Alternergy’s debut into hydropower development after initially concentrating on wind farm as well as solar installations in the flourishing renewable energy (RE) investment space of the country.
Rafael explained that the power supply deal, as well as the earlier funding secured from the Development Bank of the Philippines (DBP) for the project, will “sustain the momentum for the Dupinga project.”
Based on blueprint set out for the project, the greenfield hydropower facility is targeted for commercial commissioning in 2024 – and that is also the timeframe on when it is expected to deliver its electricity supply commitment to the Nueva Ecija electric cooperative.
The Dupinga hydropower project is a joint venture between Alternergy Holdings Corporation, a company founded by former Energy Secretary Vincent Perez; and Markham Resources Corporation, a renewable energy company led by businessman Francisco Tiu Laurel of the Frabelle Group.
Rafael specified that the Dupinga hydropower facility, which is an “embedded power generation located within NEECO II Area 2 franchise area, will improve supply reliability and quality of power in the Gabaldon and other nearby municipalities which are at the tail-end of NEECO II Area 2 distribution system.”
On the part of the off-taker power utility, NEECO II Area 2 General Manager Ramon de Vera said “we need to stay consistent in providing efficient, reliable, and affordable electric services.”
He primarily stated that “the present administration's eagerness to increase the sources of renewable energy inspires us, and it revives our hopes to continue the journey in figuring out how we can make our power supply more sustainable to defeat the threats of frequent power outage.”
Being an on-site facility, Alternergy further indicated that the Dupinga hydropower plant would certainly yield savings for the NEECO II-Area 2 customers; and this will be realized through
“avoided transmission fees and zero-VAT (value added tax) on the purchased power.”
Alternergy added “ as a renewable power supply with no fuel charges, power from the Dupinga project is competitively-priced against other power suppliers of NEECO II Area 2 which are mostly from coal power plants and are exposed to fuel price increases.”