The electricity will come from the Unified Leyte Geothermal Power facilities operated by First Gen subsidiary Energy Development Corp. The company said the indigenous renewable energy source would provide continuous power while reducing the cooperatives’ exposure to volatile international fuel prices.
The agreements cover the Capiz Electric Cooperative, Cebu I Electric Cooperative, Cebu II Electric Cooperative, Guimaras Electric Cooperative, Iloilo I Electric Cooperative, Iloilo II Electric Cooperative, Iloilo III Electric Cooperative, Negros Occidental Electric Cooperative, Negros Oriental I Electric Cooperative and Negros Oriental II Electric Cooperative.
The contracts resulted from the National Electrification Administration’s Competitive Selection Process (CSP) for the Luzon and Visayas Electric Cooperatives Aggregation (LVECA), which consolidates the electricity requirements of 29 electric cooperatives to strengthen their negotiating position and help them secure lower prices and more favorable supply terms.
Longer relationship
“The signing of these power supply agreements establishes a longer relationship between the electric cooperatives and power generation companies,” NEA Special Bids and Awards Committee vice chair Alexander Paul Rivera said in a statement.
Rivera said the partnership carried a shared responsibility to provide consumers with reliable and stable electricity at the least cost.
NORECO II general manager Fe Marie Dicen-Tagle said aggregation strengthened the cooperatives’ negotiating position and allowed them to pursue economies of scale.
“This agreement represents more than just procurement of electricity; it is our commitment to secure reliable, competitive and sustainable power supply for our communities,” Dicen-Tagle said.
First Gen’s agreements with the 10 electric cooperatives form part of a broader NEA initiative to aggregate the power requirements of 29 electric cooperatives under LVECA, giving them greater bargaining power to secure more competitive electricity rates and favorable supply terms.
Clean, reliable source
Energy Development Corp. president Jerome Cainglet said geothermal energy would provide the participating cooperatives with round-the-clock power that is not directly dependent on imported fuels.
“By choosing 100 percent indigenous geothermal energy, our partner-ECs are securing a 24/7 baseload supply that is clean, reliable and shielded from international fuel price shocks,” Cainglet said.
The supply agreements come as the Visayas seeks additional dependable generation to support its power grid. Geothermal plants can provide baseload electricity regardless of weather conditions, distinguishing them from intermittent renewable sources such as solar and wind.
First Gen said it accounts for 63 percent of the Philippines’ installed geothermal capacity. The group has about 1,700 MW of renewable energy capacity from 31 geothermal, hydroelectric, solar and wind facilities nationwide. — Ed: Corrie S. Narisma
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