EDC to supply cheaper

Geo-power to Bohol

CORTES, Bohol, Jan 27 (PIA)—With prices of power sourced out from fossil fuels most likely to continue soaring in the next years, there is a brighter hope for Bohol.

This as the Energy Development Corporation (EDC), the country’s premier diversified renewable and sustainable energy company from the Lopez group of companies, is now poised to sign the documents to sign a supply contract for about 50 megawatts of power to Bohol.

EDC Corporate Public Relations Department Head of the Leyte Geothermal Facility Erwin Magallanes, during an event with Bohol Media Thursday, revealed the development, as distribution utilities (DU) in Bohol are set to sign another service supply contract.

The re-entry of geothermal energy-sourced power for Bohol means a lower costs as reflected in the consumer’s monthly bill, as compared to the more expensive power sourced out from coal or diesel.

At present, Bohol’s Distribution Utilities are getting a huge amount of coal-generated power mixed with other sources as monthly bills reflect generation companies as Cebu Energy Development Corporation, and GN Power which are supplying power from coal-fired plants, EIMOP, JHEP (hydro) and SMEC (Hybrid).

According to the Department of Energy (DOE) which governs the power supply procurement processes of DUs to their service areas, Department Circular No. 2018-02-0003 prescribes the policy in the conduct of Competitive Selection Process (CSP) in the Procurement by the Distribution Utilities of Power Supply Agreement for the Captive Market.

This is so that it promotes the needs of [zc1] consumers as presented in the DUs Distribution Development Plan (DDPs) and Power Supply Procurement Plans (PSPPs).

This also assures that the DU follows transparency and technology neutrality in considering lowest possible cost and the reliability of the energy service.

Part of the CSP is the disclosure of the generation company to supply the needs, has the capacity to meet the demands needed at any given time.

The EDC, which has over 40 years of pioneering sustainable practices, used to be the world’s biggest renewable energy produce, is still the Philippines’ leading 100% renewable energy producer with an installed capacity of 1,480.19 MW.

This Accounts for about 20% of the country’s total installed renewable energy capacity.

With EDC’s Ormoc and Malitbog Geothermal Plants in Leyte, the power generation company would be getting from its geothermal facilities the more stable-priced supply for Bohol.

Compared to fossil fuel produced power, consumers’ bills would include the pass-on rate, which is the generation company’s manner of dampening the added energy production cost brought about by the fluctuating cost of the fuel like diesel or coal in the world market and the transport costs.

This adds up to the power cost reflected in the consumer’s monthly bills, whereas with geothermal energy sourced-out power, the price is fixed for the five years of contract, explains Magallanes. (rahc/PIA-7/Bohol)

CHEAPER SUPPLY. EDC’s corporate public relations department chief Erwin Magallanes revealed that the geothermal energy supplier from Leyte is set to supply about 50 megawatts of power to Bohol as soon as the deal is formalized anytime soon. Geothermal energy, owing to its stable cost of production, makes cost adjustments every five years, unlike coal-energy which fluctuates everytime according to world market price and transportation costs. (PIABohol)