Alternergy Holdings Corp. has signed a power supply agreement (PSA) with the Nueva Ecija Electric Cooperative II—Area 2 (NEECO II Area 2).
Under the agreement, the cooperative will draw power from Alternergy’s 4.6 megawatts (MW) Dupinga mini hydropower project in Gabaldon, Nueva Ecija.
The contract was signed between the electric cooperative and Alternergy’s subsidiary, Dupinga Mini Hydro Corp. (DMHC).
DMHC and NEECO II Area 2 are set to submit within the month a joint application to the Energy Regulatory Commission for approval of the PSA which will also finalize the cost of the contract.
“The PSA and DBP (Development Bank of the Philippines) funding sustain the momentum for the Dupinga project as we target completion and commencement of renewable power supply to NEECO II Area 2 by early 2024,” said Annette Rafael, DMHC vice president, in a statement yesterday.
The DBP earlier approved a P660- million funding support for the hydro project.
Rafael said the Dupinga project, as an embedded power generation located within NEECO II Area 2 franchise area, will improve supply reliability and quality of power in Gabaldon and other nearby municipalities.
As an embedded power plant, the Dupinga project is also expected to generate savings to NEECO II Area 2 customers through avoided transmission fees and zero value added tax on the purchased power.
As a renewable power supply with no fuel charges, power from the Dupinga project is also competitively-priced against other power suppliers of NEECO II Area 2 which are mostly from coal power plants and are exposed to fuel price increases.
DMHC is a partnership between Alternergy Holdings and Markham Resources Corp., a renewable energy company led by Francisco Tiu Laurel of the Frabelle Group.
The Dupinga project forms part of Alternergy’s goal of building a total of 1,245 MW of renewable energy capacity in the next five years. – Jed Macapagal
