Vivant Integrated Diesel Corp. (VIDC), an affiliate of listed firm Vivant Corp., has secured a power supply agreement with the Bantayan Electric Cooperative (BANELCO) in Cebu.
Under the deal, VIDC, a wholly owned subsidiary of Vivant Energy and Gigawatt Power Inc. will provide 15 megawatts (MW) of power to BANELCO for 15 years.
VIDC was declared winner in the competitive selection process last July. BANELCO’s contract with its current power supplier is set to expire on 2021.
The formal signing of an agreement between the parties is expected before the year ends which will be then submitted to the Energy Regulatory Commission for approval.
In a statement, BANELCO said the island needs additional power supply due to the growing number of tourist-related activities in the island that spurred various developments in the area.
It said peak demand for the island last year was only 6 MW which is above the current 4.892 MW available power supply. Demand is expected expected to jump to 13 MW by 2027.
At present, Vivant Energy is among the largest power providers in off-grid areas with a portfolio of over 40 MW.