Peak power inks supply deal with Zambo Electric Coop

Manila Bulletin 
By Myrna Velasco 
October 21, 2013 

Under the purview of a build-operate-maintain-transfer framework, project developer Peakpower Energy Inc. has inked a power purchase and transfer agreement (PPTA) with its capacity off-taker Zamboanga del Sur II Electric Cooperative.

Peakpower is a wholly-owned subsidiary of A. Brown Company Inc., and it has been the designated corporate vehicle for the company’s 5.0-megawatt bunker-fired power facility which will serve the electricity requirements of ZAMSURECO II’s franchise area.

The area is being tormented with up to 12-hour rotating power interruptions and compounding that dilemma had been the rise in power costs of up to 83.39-percent as paid for by consumers of ZAMSURECO II in recent years.

In a press statement, Peakpower noted that the agreement “is subject to approval by the Energy Regulatory Commission.”

It was concurred by the relevant parties that the project will “be completed within a specified cooperation period.”

Peakpower president Roel Z. Castro said “their (ZAMSURECO II) acceptance of our proposal takes us one step closer towards overcoming the ongoing power shortage in the region.”

The pact stipulated that “Peakpower would install and operate a complete and fully operational 5.0MW bunker-fired power plant within the franchise area of ZAMSURECO II.”

After that Zamboanga development, the company has also been advancing the construction of two other bunker-fired power facilities in General Santos City via its 20-MW Peakpower Soccsksargen project; and 5.0MW Peakpower San Francisco facility in Agusan del Sur.

For ZAMSURECO II, its service area covers Vitali District in Zamboanga City as well as the 23 municipalities of Bayog, Buug, Diplahan, Kabasalan, Kumalarang, Lakewood, Ipil, Imelda, Malangas, Mabuhay, Naga, Olutanga Alicia, Payao, Siay. Roseller T. Lim, Titay, Tungawan and Talusan in Zamboanga del Sur; plus Siocom, Sirawai, Sibuco and Baliguianin in Zamboanga del Norte.

Peakpower noted that the facility could help meet demand “for peaking power and improving economic stability in the area.”

The deficiency in power supply that has been afflicting Mindanao grid, Peakpower said “has compelled ZAMSURECO II to implement manual load dropping and brownouts during hours of the day when power demand is at its peak, which leads to business and industry losses as well as inconvenience to consumers.”   source