Published
February 3, 2017, 10:01 PM
The
Energy Regulatory Commission (ERC) has declared Universal Robina Corp.’s (URC)
biomass power plant in Negros Occidental eligible for a feed-in tariff.
In a “certificate of
compliance” signed by its commissioners: Gloria Victoria C. Yap-Taruc; Josefina
Patricia A. Magpale-Asirit; Alfredo J. Non; and Geronimo D. Sta. Ana, the
commission decided that the 46MW power plant, in Kabankalan city, is entitled
to a feed-in tariff of R6.63 per kilowatt-hour till 2035, for a committed
capacity of 20MW.
A feed-in tariff is an
energy supply policy meant to support the development of renewable energy
projects by offering long-term purchase agreements.
Under this policy, an
eligible producer of renewable energy is entitled to a guaranteed payment of
fixed rate – the feed-in tariff – for each kilowatt-hour of energy it supplies
to the relevant grid.
The biomass power plant
is URC’s foray into renewable energy.It will use bagasse from URC’s sugar mill
in Kabankalan, which has a capacity of about 9,000 tons per day.
Bagasse is the dry,
pulpy residue left after extracting juice from sugarcane. It is normally
thrown away as a byproduct, but it can be used as fuel.
Half of the Kabankalan
power plant’s output will be used by the sugar mill. The other half will go to
the Visayas grid under a 25-year operating contract with the energy department.
Business Unit General
Manager for URC Sugar & Renewables Group (URC SURE)Rene Cabati said the
power plant, “will support the government’s program on renewable and green
energy.”
He added that the
facility is part of URC’s efforts to incorporate environmental, social,
governance, or ESG, initiatives and practices into its business.
“URC believes it has a
responsibility towards the environment and has taken concrete steps towards
compliance with environmental laws, promoting recycling and reincorporation,
investing in renewable energy, sustainable sourcing, promoting animal welfare,
and sustainable farming,” Cabati said.
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