Cepalco to put up 30-MW solar power plant in Mindanao

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WEDNESDAY, 26 JANUARY 2011 19:51 PAUL ANTHONY A. ISLA / REPORTER

THE Cagayan de Oro Electric Power Light Co. Inc. (Cepalco) is looking at setting up in Mindanao a 30-megawatt (MW) of generating capacity sourced from the sun.

Ramon Abaya, Cepalco president, said they are planning to put up a total of 20 MW that will be done in two phases in the near term.

“We have 40 hectares of land in Cagayan de Oro where 20 MW of solar farm could be built in the next 18 months. If there would be a definite feed-in tariff [FIT], then we may increase this to 30 MW in the next three years,” Abaya said.

He added they will initially put up the first 10 MW on their own and that they might need to tap partners should they increase the capacity of their initial 10-MW solar power farm project.

Abaya said they have yet to talk with potential partners.

He implied that everybody is still on “wait and see” attitude for the FIT to be put in place.

“Negotiations will not be sealed until the final FIT is determined,” Abaya said.

The feed-in tariff guarantees renewable-energy developers a fixed rate due to them over a period of time.

Initial talks among industry players, according to Abaya, indicate that the FIT would range around P10 to P19 per kilowatt-hour (kWh).

“But this cost may go down once more players come in. We hope to bring down the costs. We will bid out the contracts so we will have an option to get the most competitive price,” he said.

Abaya added that they will be bidding out the first phase of their solar project in Cagayan de Oro.

“There are more than 10 suppliers that have submitted their bids. But we have shortlisted three. All are German integrators,” he said.

The solar panels, according to Abaya, will be sourced from either Taiwan or China, or whoever offers the most competitive price.

If the FIT is in place, Abaya said they would be able to complete their solar project within six months.

In January last year, the Energy Regulatory Commission  renewed Cepalco’s Certificate of Compliance (COC) for its 950-kilowatt Solar Photovoltaic (PV) Power Plant in barangay Indahag, Cagayan de Oro City.

Cepalco’s PV plant started its commercial operations also in September 2004, after securing the first COC. The PV plant displaces barrels of fuel oil and avoids around 24,000 tons of carbon compound emission into the environment.