DMCI to build power plant for Palawan electric co-op

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WEDNESDAY, 18 JULY 2012 19:22 PAUL ANTHONY A. ISLA / REPORTER

LISTED DMCI Holdings Inc. said on Wednesday that DMCI Power Corp., its power business arm, has been enlisted by the Palawan Electric Cooperative (Paleco) to provide its power requirements.

In a disclosure with the Philippine Stock Exchange, DMCI said DMCI Power has been declared by Paleco as the winning bidder for its 2-megawatt (MW) power plant requirement. 

DMCI said DMCI Power proposed to provide electricity to Paleco at a true cost generation rate of P9.38 per kilowatt-hour.

Nestor Dadivas, DMCI Power president, told reporters in an interview they will put up the diesel power plant which they target to finish by September 2013.

Dadivas said Paleco had informed them they need the power plant operational to begin supplying their power requirement by September 2013.

Dadivas said they will also make preparations for a 15-MW coal-fired power plant, which is targeted for commissioning in October 2014.

The planned coal-fired power plant, Dadivas said, can be expanded by another 15 MW depending on demand growth and Paleco’s demand forecasts.

The Department of Energy (DOE) earlier said it has been in constant discussion with the National Power Corp. (Napocor) and the management of Paleco about the latter’s situation.

At present, the Department of Energy (DOE) said Paleco has put in place a voluntary load curtailment program participated in by big load consumers as a stop gap measure, as Puerto Princesa is experiencing a recurrent power interruption in the last two months due to the breakdown in the generating units of its power providers, PPGI and Delta Power.

Since April last year, Paleco initiated bidding for its third new power provider (NPP) in anticipation of the expiration in October 2013 of the Napocor-Paleco Interim Supply Agreement for 10 MW to 45 MW.

The DOE said peak demand in Palawan is 30.5 MW, while power supply from its current power providers total to 35.5 MW.

The DOE said there have been continuous discussions between them and Paleco officials on the possible involvement of Napocor to provide for additional power by December to help mitigate the power supply deficit.

With the recent declaration of the Sanggunian Panlungsod, the DOE has enhanced its monitoring in Palawan and has been taking a proactive stand by working with stakeholders in responding to its emerging supply concerns.

The DOE said it is doing all the necessary measures so Palawan can have ample supply especially with the fast growth being experienced in Palawan as one of the country’s premier tourist spots.   source