Philippine economy

New geothermal plant to pull down power rates in Mindoro

Rappler.com
A power supply agreement is currently being negotiated for EPI to supply the power requirements of the Oriental Mindoro Electric Cooperative

MANILA, Philippines – A new 40-megawatt (MW) geothermal power facility that will be put up by Emerging Power, Inc. (EPI) is expected to bring down electricity prices in Mindoro island.

The Montelago Geothermal Power Plant will be put up in Barangays Montelago, Montemayor and Melgar-B in Naujan, Oriental Mindoro. The first 20MW will be available to Occidental Mindoro while the other 20MW to Oriental Mindoro by mid-2016.

According to EPI, the power facility is expected to bring electricity rates down by 40% – from the current rate of P11 per kilowatt-hour (kWh) to P6.58 per kWh by 2016. This means some P2.1 billion worth of savings in 4 years, EPI estimated.

The company also stressed that the geothermal plant will give a cheap and renewable energy source to the blackout-prone island.

A power supply agreement (PSA) for 20 MW is currently being negotiated for EPI to supply the power requirements of the Oriental Mindoro Electric Cooperative (ORMECO).

“As we anticipate the Montelago Geothermal Power Plant’s commissioning and operation, we look forward to the positive economic and environmental impact it will bring, when our consumers shall have been accorded more affordable electricity drawn from renewable energy,” ORMECO President Audel Arago said.

EPI spokesperson Gani Capaning said the new power plant will assure the people of Mindoro of a sustained, cheap power supply.

“The high cost of diesel and bunker fuel has been jacking up the cost of electricity in the Philippines’ main power grids and will continue to do so in the coming years …The Montelago Geothermal Power Plant will stabilize the price over the next 20 years and consumers will only pay a maximum of  P7.50 by 2030,” Capaning added. – Rappler.com