PERC’s RE unit setting aside P2.7B for PetroGreen’s solar, wind portfolio

By Lenie Lectura - July 29, 2019

https://businessmirror.com.ph/2019/07/29/percs-re-unit-setting-aside-p2-7b-for-petrogreens-solar-wind-portfolio/

THE renewable-energy (RE) unit of PetroEnergy Resources Corp. (PERC) is allotting as much as P2.7 billion to expand the solar and wind portfolio of PetroGreen Energy Corp.

PetroGreen Vice President and Chief Operating Officer Francisco Delfin Jr. said the company plans to put up 10-20 megawatts (MW) of solar power capacity in Palawan costing “a little over P1 billion, about P1.1 billion to P1.3 billion.”

Delfin added: “This is a service contract we secured as early as 2017. We have already secured many of the necessary government permits including LGU endorsements, ECC clearances. We have completed the technical feasibility studies. The only thing holding us back from proceeding is the off-taker in Palawan.  There’s only one buyer and that is Paleco [Palawan Electric Cooperative]. We are are still waiting.”

In order for the company to supply Paleco, the electric cooperative  (EC) must first conduct a competitive selection process (CSP).

The CSP requires distribution utilities and ECs to hold competitive bidding for their supply requirements as against securing power deals via bilateral contracts. This is meant to ensure transparency and fair competition.

The plan is to put up 10  to 20 MW of solar power on a property that is already owned by PERC. The power facility will also include diesel and battery storage for continuous power supply throughout the day. Delfin said the solar power project could be constructed in phases, depending on the requirements of Paleco.

When it will conduct a CSP “all depends on Paleco,” he said. “We can go with an initial 10 MW, but it depends on the customer. The diesel component will ensure the 24-hour availability. For the battery, we are looking at two to four hours of battery storage hours.”

PERC, through it renewable-energy holding unit PetroGreen, operates four power-generating units—the 20-MW Maibarara-1 and the 12-MW Maibarara-2 geothermal plants under Maibarara Geothermal Inc. (MGI), the 36-MW Nabas-1 wind farm by PetroWind Energy Inc. (PWEI), and the 50-MWDC Tarlac-1 solar plant under PetroSolar Corp. (PSC). 

 Last week, Delfin said PWEI will expand its 36-MW Nabas wind power project by 14 MW for P1.4 billion.

The target commercial operation of the expansion project is first quarter of 2021. 

Delfin added that the target completion of the wind expansion project depends on the completion of various transmission line projects of the National Grid Corp. of the Philippines (NGCP) in the area. Without transmission lines, power from the impending Nabas 2 project  cannot be delivered to an electric cooperative which, in turn, will distribute electricity to the households.

Aklan’s electricity demand currently stands at 61 MW, half of which comes from Boracay Island.

Delfin said that the project’s target completion date also depends on how fast it can procure a power-supply contract with a distribution utility firm.  

Aklan Electric Cooperative distributes electricity in Aklan. PWEI is eyeing to supply power to Akelco via CSP.

“Our target is Akelco. With the cleanup of Boracay, hotels and establishments are going back to Akelco rather than operate their own generator sets. Our proposition to them is that by sourcing their supply from Nabas, it will not only stabilize Akelco’s distribution system but also promote investments compared to sourcing from outside Aklan,” explained Delfin.