Napocor may tap Suweco for its power needs in SPUG

MANILA, Philippines - State-run National Power Corp. (Napocor) may tap Sunwest Water and Electric Co., Inc. (SUWECO) for its power needs in the Small Power Utilities Group (SPUG).

Napocor president Froilan Tampinco said SUWECO does not only provide cheaper power, the power being generated by the power firm is renewable energy (RE).

 “I would recommend renewable energy for SPUG areas, for as long as their equivalent generation costs would bring about a net lowering in the existing subsidy,” Tampinco said.

At present, SUWECO has a supply contract with the First Catanduanes Electric Cooperative (FICELCO).

To date, SUWECO has completed one of its three planned projects - the 1.5-MW Obi small hydropower plant. 

During a recent House committee on energy meeting, the Napocor executive pointed out that they are spending a lot of subsidy for their SPUG plants as the cost of generating power is higher than the socially acceptable power rate.

 “In Catanduanes, the generation cost is P13 per kilowatt-hour (kwh) while the socially accepted rate is only P6.60 per kwh,” he said.

Moreso, he added that the subsidy is sourced from the Universal Charge for Missionary Electrification that consumers pay to power retailers like the Manila Electric Co. (Meralco), which are remitted to the Power Sector Assets and Liabilities Management Corp. (PSALM) and then given to Napocor.

Suweco’s cost of generating power is P5.39 per kilowatt-hour (kwh), which it sells at P5.70 per kwh.

In Catanduanes, the government generates savings of up to P110 million every year in terms of subsidy because of SUWECO’s small hydropower plant.

 “Catanduanes is the showcase of all the SPUG areas. It’s a success story in the making with respect to having clean affordable source of energy,” he said.

Suweco president Jose Sylvestre Natividad, on the other hand, said the Obi power facility is the first of three hydropower plants on Suweco’s pipeline.

Natividad said another project in Barangay Solong in San Miguel town is on the final phase of testing while the one in Barangay Paraiso in the same town is yet to be constructed.

 “Altogether, the three power plants are seen to meet 100 percent of the island’s 6.5- megawatt power demand and, when this happens, Catanduanes will be the first province in the country to fully rely on green energy,” Natividad said.

Earlier, SUWECO chairman Elizaldy S. Co noted that the company’s hydropower facilities will help lessen the national government’s spending on missionary electrification by P80 million to P100 million yearly.

 “By providing renewable energy, we also help save the environment by helping reduce greenhouse gas emissions from conventional oil-based energy sources,” Co said.