Palawan electric coop inks first renewable power deal

Paleco-and-Langogan-Power-Corp_CNNPHPaleco and Langogan Power Corp. sign a deal to improve the power supply situation in Palawan.

Puerto Princesa (CNN Philippines) — In a bid to harness Palawan’s untapped renewable energy resources, the Palawan Electric Cooperative (Paleco) signed on Friday (September 4) a 25-year power supply contract with the Langogan Power Corp. (LPC).

Under the agreement, LPC will supply the island’s main grid with 20 megawatts.

“This is another milestone in the history of Paleco, because this is the very first signing of contract engaging renewable energy,” Paleco general manager Ric Zambales said.

The deal is expected to stabilize the province’s power supply as it is often besieged with brownouts lasting up to four hours due to the failure of Paleco’s three independent providers to deliver its contracted power. The power interruptions were experienced mostly during the summer.

LPC, which is accredited by the Department of Energy, is eying to tap into Palawan’s three major river systems: the Langogan River in Puerto Princesa City and the Batang-Batang and Talakaigan Rivers in southern Palawan.

LPC will use run-of-the-river mini hydro technology. Its tariff is pegged at P6.59 per kilowatt hour, cheaper than Paleco’s current P9.23.

LPC Chairman Michael Wootton told CNN Philippines over the weekend that they had been wooing Paleco for the past seven years before getting its nod to buy into the project.

“The total investment for the three projects (facilities) is P3 billion. It will all be operational within 2018 or early 2019,” Wootton said.

“We will first open the access road to the Langogan sites starting in a week or two. The main site work will start in January 2016,” he added.

Meanwhile, potential hydroelectric projects in Palawan have an estimated capacity of 182.47 megawatts, which can provide energy of up to 959 gigawatt-hours, according to the Palawan Island Power Development Plan (PIPDP).

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