Business World Online
Posted on February 28, 2014 07:46:50 PM
A POWER DISTRIBUTOR in Oriental Mindoro has secured preliminary approval for its 25-year supply deal with Ormin Power Corp., according to a regulatory document released to media on Friday.
The Energy Regulatory Commission (ERC), in an order dated Jan. 20, granted provisional approval for the power supply agreement (PSA) of Oriental Mindoro Electric Cooperative, Inc. (ORMECO) and Ormin Power.
Under the PSA, “Ormin Power shall construct, operate and own the Inabasan mini hydro power plant with an installed capacity of 10 MW (megawatts).”
The P1.5-billion plant -- which will be built in Barangay Caagutayan in the municipality of San Teodoro -- will source its water requirement from Inabasan River.
The PSA of the two parties is good for a period of 25 years upon start of commercial operations of the plant in 2016.
“An initial evaluation of the application disclosed that the PSA entered into by and between ORMECO and Ormin Power will redound the benefit of ORMECO’s member-consumers in terms of continuous, reliable, efficient and affordable power supply,” the order read.
The ERC also approved a P5.90 per kilowatt-hour generation rate for the electricity generated by Ormin Power’s hydro plant.
The PSA, the regulator further said, the PSA would address the growing energy needs of the customers of ORMECO.
“ORMECO projects an increase in the energy consumption of its customers which may be attributed to the influx and growth of commercial establishments and the continuing expansion of residential areas in the province of Oriental Mindoro,” it noted.
“With no sufficient reserve power, ORMECO will be confronted with deficiency of energy, thereby posing a greater risk of power shortage in the face of its increasing demand.”
ORMECO, in its petition in November last year, had said it wanted to ensure sufficient, reliable power supply in the province through utilization of renewable sources of energy. The putting up of the Inabasan power plant is not only essential in meeting the energy demands of ORMECO; at the same time, it would be helpful in safeguarding the member-consumers from adverse effects of soaring petroleum prices,” ORMECO said.
The 10-MW hydro plant will be the second power project of Ormin Power in the province, after a 6.4-MW diesel power plant that also supplies electricity to ORMECO.
ORMECO distributes electricity in the municipalities of Baco, Bansud, Bongabong, Bulalacao, Gloria, Mansalay, Naujan, Pinamalayan, Pola, Puerto Galera, Roxas, San Teodoro, Socorro, Victoria and the city of Calapan -- all in the province of Oriental Mindoro. -- C. A. M. C. Feliciano source
Under the PSA, “Ormin Power shall construct, operate and own the Inabasan mini hydro power plant with an installed capacity of 10 MW (megawatts).”
The P1.5-billion plant -- which will be built in Barangay Caagutayan in the municipality of San Teodoro -- will source its water requirement from Inabasan River.
The PSA of the two parties is good for a period of 25 years upon start of commercial operations of the plant in 2016.
“An initial evaluation of the application disclosed that the PSA entered into by and between ORMECO and Ormin Power will redound the benefit of ORMECO’s member-consumers in terms of continuous, reliable, efficient and affordable power supply,” the order read.
The ERC also approved a P5.90 per kilowatt-hour generation rate for the electricity generated by Ormin Power’s hydro plant.
The PSA, the regulator further said, the PSA would address the growing energy needs of the customers of ORMECO.
“ORMECO projects an increase in the energy consumption of its customers which may be attributed to the influx and growth of commercial establishments and the continuing expansion of residential areas in the province of Oriental Mindoro,” it noted.
“With no sufficient reserve power, ORMECO will be confronted with deficiency of energy, thereby posing a greater risk of power shortage in the face of its increasing demand.”
ORMECO, in its petition in November last year, had said it wanted to ensure sufficient, reliable power supply in the province through utilization of renewable sources of energy. The putting up of the Inabasan power plant is not only essential in meeting the energy demands of ORMECO; at the same time, it would be helpful in safeguarding the member-consumers from adverse effects of soaring petroleum prices,” ORMECO said.
The 10-MW hydro plant will be the second power project of Ormin Power in the province, after a 6.4-MW diesel power plant that also supplies electricity to ORMECO.
ORMECO distributes electricity in the municipalities of Baco, Bansud, Bongabong, Bulalacao, Gloria, Mansalay, Naujan, Pinamalayan, Pola, Puerto Galera, Roxas, San Teodoro, Socorro, Victoria and the city of Calapan -- all in the province of Oriental Mindoro. -- C. A. M. C. Feliciano source
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