Cepalco eyes more solar-power plants in Mindanao

Business Mirror
SUNDAY, 02 OCTOBER 2011 17:22 PAUL ANTHONY A. ISLA / REPORTER


CONSUMERS in Mindanao could soon expect an additional power coming from the sun as Cagayan Electric Power and Light Co. (Cepalco) is set to soon put a 20-megawatt (MW) solar-power facility.


Cepalco said in a statement that the solar power farm will be built in Villanueva, Misamis Oriental.


The location, according to Cepalco, will have enough room for another 10-MW facility that will be added a year later.


While the rule of thumb requires 2 hectares of land for every megawatt sourced from the sun, Cepalco has earmarked about 50 hectares of an industrial zone for a 30-MW photovoltaic plant in the area. As panel efficiencies rise, the land required will shrink.


“The new plant will help relieve shortages by displacing very expensive oil-fired units—which are then turned into reserves where they should rightly be. It will generate power equivalent to at least 30,000 barrels of fuel oil annually. We expect to generate about 14 million kilowatt-hours of electricity annually upon its completion in five years,” said Ramon Abaya, Cepalco president.


The fourth-largest private power generator in the country, Cepalco said its 1-megawatt (MW) photovoltaic plant was installed at a cost of $ 5.3 million, which was partially funded by the Global Environment Facility (GEF) and facilitated by the World Bank through the Intenational Finance Corp.


Cepalco said the turnkey contract was awarded to Sumitomo Corp. Sharp Japan manufactured the PV modules and Sansha made the inverters.


“The power plant is actually just a demonstration solar farm but it has been providing 1-MW of clean electricity to Cagayan de Oro for the past seven years. For our more than 100,000 consumers, that’s seven years of paying less per kWh of electricity, especially during peak hours,” Abaya said.


Commissioned in 2004, the computerized and fully automated solar photovoltaic plant was also the largest of its kind in the developing world.


Despite its size, the solar farm’s operation and maintenance costs are relatively minimal compared to those of other generating technologies, Abaya said.


“Everyday operations are managed by a lone maintenance engineer together with a security guard and a janitor,” he added.


Since its commissioning, the 1-MW solar power plant has fed the grid with higher-than-expected annual generation. In 2010 the plant generated 1.25 million kilowatt-hour (kWh) of electricity compared to the expected 1.19 million kWh.


With their success in providing clean, renewable and affordable power to communities in Cagayan de Oro, Abaya expressed optimism that the government would fast-track the implementation of more solar-power projects in Mindanao.


“Solar farms can complement existing coal-fired plants and can be quickly installed even in off-grid areas. A 10-MW solar power plant can be installed and commissioned in just six months or even less,” Abaya said.


“In Mindanao alone, 13 solar projects are planned with a total capacity of 260 MW. We will be located in Cagayan de Oro, Davao, Zamboanga, Misamis Oriental, Dinagat Island, Zamboanga del Sur, Sultan Kudarat and Davao del Sur,” he said.