Under a two-year retail electricity supply agreement, COREnergy will supply 0.55 megawatts (MW) of contracted capacity to DEDON, the Cebu-based manufacturing arm of global luxury outdoor furniture brand DEDON.
The agreement marks the first adoption of COREnergy’s Sunshine Plan, which combines stable daytime electricity rates backed predominantly by solar generation with variable Wholesale Electricity Spot Market (WESM) pricing during non-solar hours.
Daytime demand
The plan is aimed at businesses whose electricity consumption is concentrated during the day, allowing them to match their power procurement more closely with their operating schedules.
For DEDON, whose manufacturing operations are predominantly conducted during daytime hours, the arrangement is expected to provide greater predictability in electricity costs during its main production period while retaining market-based pricing during off-peak hours.
“As a manufacturing facility with significant daytime operations, the Sunshine Plan aligns well with our energy profile while supporting our ongoing sustainability initiatives,” DEDON Manufacturing general director Rosy Grace Cabradilla said in a statement.
“We're pleased to be the first company to adopt this offering and look forward to growing our partnership with COREnergy,” she added.
DEDON was founded in Germany in 1990 and established manufacturing operations in Cebu four years later, tapping the province’s pool of skilled furniture weavers.
Its Cebu facilities produce handcrafted outdoor furniture for luxury residences, hotels, resorts, yachts and other hospitality destinations in more than 100 countries.
Power costs
Electricity is a major operating input for manufacturers, powering production equipment, quality-control systems and other processes.
COREnergy said the Sunshine Plan was developed particularly for manufacturers with substantial daytime loads, enabling them to take advantage of solar generation during hours when their power demand is highest.
“DEDON's adoption of the Sunshine Plan is an early signal of where we see this product going,” COREnergy vice president and head of operations Marko Sarmiento said in the same statement.
“There's a growing segment of manufacturers whose operations are concentrated during the day, and we built this plan specifically for them. We're excited to bring this same value to more businesses across our manufacturing portfolio in the months ahead.”
Sustainability push
The agreement also supports DEDON’s sustainability initiatives as the furniture maker seeks to improve the efficiency of its manufacturing operations.
DEDON has developed proprietary fiber technologies, including its EcoCycle Fiber, as part of efforts to incorporate sustainability into its products and operations.
For COREnergy, the DEDON agreement provides an initial test of its strategy of tailoring electricity contracts to customers’ consumption patterns rather than relying on a single pricing structure throughout the day.
The Vivant Energy unit said it plans to offer the Sunshine Plan to more manufacturers as businesses seek to manage electricity expenses while increasing the use of renewable energy. —-Connie Fernandez-Brojan | Ed: Corrie S. Narisma
