The geothermal power developer Envent Holdings Philippines has inked supply deals with five electric cooperatives in Leyte to underpin the development of its initially planned 50-megawatt Biliran power facility.
In a press release the company’s CEO Gudmundur Sigurjonsson said the committed capacity to the electric coops will already account to 35 megawatts or close to covering the proposed plant’s installed capacity.
The power purchase agreements (PPAs) which lasts 10 years is estimated to run up to $330 million-$338 million. The price per megawatt hour is US$100 and US$113.
“The execution of these PPAs is a major milestone for the project as the revenue portion of the plant is now mostly taken care of,” said Sigurjonsson.
He added the negotiations with the off-takers went well and “we are now working on the financial structure of the project which will take between 5 to 10 months to complete.”
The Biliran geothermal project is scheduled for completion by 2012 and will help augment the power needs of the Visayas grid.
The power supply pacts were inked with Leyte Electric Coops II, IV, V Don Orestes Romualdez Electric Cooperative and Southern Leyte Electric Cooperative (SOLECO).
The company noted the signing of the latest round of agreements served as a follow-through to the other PPA signed last June for another 5 MW capacity commitment.
“Together the agreements with the six off-takers commit 40 MW of the Biliran plant’s capacity. The coops that signed the agreements handle more than 300,000 customers representing a population of 1.9 million on Bilian and Leyte island which is connected by a bridge,” the company said.
It added that the remaining 10 MW capacity will also be offered soon to the six off-takers, while any balance is aligned for trading at the Wholesale Electricity Spot Market soon to be set on stream in the Visayas.
The Biliran plant, Envent noted will not be constrained with any connection dilemma as it lies just a few kilometers north of Leyte island. The project’s implementation is beeing coordinated with the Biliran Geothermal company. (By Mark Rimas)

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