Business World Online
Posted on 09:48 PM, October 20, 2010
ABOITIZ-led Therma Marine, Inc. has signed a deal with the Davao del Norte Electric Cooperative (Daneco) to provide power from Power Barge 118 stationed in Compostela Valley.
The company said in a statement it signed a power supply deal for around 10 megawatts (MW) with Daneco last Oct. 13.
“Our supply of power to Daneco, our host community for the Mobile 1 power barge (Power Barge 118), will serve as a form of insurance to meet the needs of the rapid growth of the Tagum area. Because diesel power is more expensive than the current supply from Mindanao hydropower plants, we structured the contract to have a fixed and a variable portion. This way, the more expensive energy is only drawn as it is needed, thereby minimizing the impact [on] Daneco’s consumers,” said Luis Miguel O. Aboitiz, Aboitiz Power Corp. sales, trading and marketing senior vice-president.
Therma Marine is awaiting the approval of proposed power rates for Daneco by the Energy Regulatory Commission (ERC). The power supply agreement will last for a year.
Therma Marine’s agreement with Daneco allows the cooperative to get 10 MW from Power Barge 118 anytime that it requires supply.
The Aboitiz Power unit also contracts Power Barge 118 as an ancillary service to the National Grid Corp. of the Philippines (NGCP).
Power Barge 118 and Power Barge 117 were the source of much controversy the past couple of months as the barges were used to augment the short supply of power in Mindanao.
NGCP used the barges as ancillary power during the summer months due to the shutdown of hydropower plants. After the plants came back on line, NGCP continued to use the barges to augment power supply until consumers complained of high prices.
However, due to continued brownouts in the region, the Department of Energy and the ERC allowed NGCP last week to use the barges for ancillary power despite high prices.
“Our contract with Therma Marine aims to normalize the power supply needed by Daneco. In the same way, it will continue to propel the development momentum of Davao del Norte and Compostela Valley provinces,” said Daneco President Dean Briz in the statement.
“Daneco, through the initiative of its management and board of directors, is making this bold move to be the first cooperative in Mindanao to sign with [Therma Marine] and work towards finding a solution to our power supply problems,” he added. -- E. N. J. David
“Our supply of power to Daneco, our host community for the Mobile 1 power barge (Power Barge 118), will serve as a form of insurance to meet the needs of the rapid growth of the Tagum area. Because diesel power is more expensive than the current supply from Mindanao hydropower plants, we structured the contract to have a fixed and a variable portion. This way, the more expensive energy is only drawn as it is needed, thereby minimizing the impact [on] Daneco’s consumers,” said Luis Miguel O. Aboitiz, Aboitiz Power Corp. sales, trading and marketing senior vice-president.
Therma Marine is awaiting the approval of proposed power rates for Daneco by the Energy Regulatory Commission (ERC). The power supply agreement will last for a year.
Therma Marine’s agreement with Daneco allows the cooperative to get 10 MW from Power Barge 118 anytime that it requires supply.
The Aboitiz Power unit also contracts Power Barge 118 as an ancillary service to the National Grid Corp. of the Philippines (NGCP).
Power Barge 118 and Power Barge 117 were the source of much controversy the past couple of months as the barges were used to augment the short supply of power in Mindanao.
NGCP used the barges as ancillary power during the summer months due to the shutdown of hydropower plants. After the plants came back on line, NGCP continued to use the barges to augment power supply until consumers complained of high prices.
However, due to continued brownouts in the region, the Department of Energy and the ERC allowed NGCP last week to use the barges for ancillary power despite high prices.
“Our contract with Therma Marine aims to normalize the power supply needed by Daneco. In the same way, it will continue to propel the development momentum of Davao del Norte and Compostela Valley provinces,” said Daneco President Dean Briz in the statement.
“Daneco, through the initiative of its management and board of directors, is making this bold move to be the first cooperative in Mindanao to sign with [Therma Marine] and work towards finding a solution to our power supply problems,” he added. -- E. N. J. David
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