SUMMARY
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MANILA, Philippines – A consortium composed of Constellation Energy Corporation (CEC), Emerging Power Incorporated (EPI), and the Netherlands Development Finance Company is set to build $170 million worth of geothermal power plant in Oriental Mindoro.
The Montelgao power plant is expected to be operational by 2016, and will have an operating capacity of 44 megawatts.
The geothermal plant will supply electricity to Oriental Mindoro at a rate of P5.64 per kilowatt hour, a rate that is compliant to the Socially Acceptable Generation Rate (SAGR).
EPI chief executive director Antonie de Wilde stressed that the geothermal plant will help the residents of Oriental Mindoro since the lower rates will assure them of sustained, low-priced power, as opposed to higher-priced power from fossil fuel such as coal.
“We are confident that the addition of geothermal power into the province’s present mix of electricity sources will have a stabilizing effect on the grid,” De Wilde said
He added that the high cost of diesel and bunker fuel has pushed the increase in the cost of electricity in the country’s main power grids, and this will continue to happen in the next few years.
“The geothermal base load is best suited for an island grid’s shift from bunker fuel to renewables, because it is not seasonal and has higher availability. The stability or reliability investors will seek can be provided by geothermal power,” De Wilde stressed.
The plant will be funded through direct equity of 30%, while the remaining 70% will be coming from bank loans.
De Wilde added that the consortium may seek the assistance of the Dutch development bank, and ask for a 25% equity, and up to 50% of debt financing.
EPI is a local firm that’s involved in the development of renewable energy projects.
The Netherlands Development Finance Company, on the other hand, is a bilateral private sector development bank which invests in firms from developing and emerging economies.
EPI has assembled a team of experts for the Montelago project led by De Wilde. – Rappler.com
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