Oriental Mindoro eyed as ‘green energy hub’

CALAPAN CITY, Philippines – Three local and foreign power companies have joined forces for an ambitious energy project designed to turn the island-province of Oriental Mindoro into a self-sustaining “green energy hub” powered by hot steam and wind.

The Philippine-based Constellation Energy Corp. (CEC) and the Emerging Power Resource Holdings Inc. (EPRHI), together with the Netherland-based IF Technology consortium, is building a multi-billion 20-megawatt geothermal power project in Brgy. Montelago in Naujan town, Oriental Mindoro, “to make the island (of Mindoro) less dependent on diesel-powered energy.

Oriental Mindoro First District Rep. Rodolfo G. Valencia, who earlier worked to get an Italian company establish a wind power facility in the said province, expressed strong support for the Montelago green energy project which is set to be commissioned by 2014.

“It has always been my desire to bring renewable power here to boost our economy,” said Valencia who has championed tourism development for Oriental Mindoro and positioned the province as the food basket of neighboring provinces and islands like Boracay.

According to the congressman, reliable and affordable power supply will help modernize Oriental Mindoro’s food production and tourism, noting that agriculture accounts for about 70 percent of the provincial economy, and citing Puerto Galera as anchor destination.

Island grids like Oriental Mindoro, which is isolated by sea from the main grids such as Luzon, are mostly plagued by high power rates because of the high cost of diesel or bunker fuels.  Until the introduction of renewable energy sources that include wind, solar, bio-mass and geothermal power, the isolated grids have to rely on expensive gas-powered turbines.

Mining businessman Jose P. Leviste Jr., chairman of CEC, said the project is now in full swing with their Dutch partners and experts worldwide already completing CSMT (Controlled Source Magneto-telluric) Survey and government endorsement of the early commissioning of the project.

CEC is developing the Montelago project under a geothermal renewable energy service contract granted by the Department of Energy (DOE) and would initially build a 20-MW power plant on-site. 

The geothermal field, according to the initial survey, has potential for as much as 70MW.

Dutchman Dr. Antonie de Wilde, EPRHI project chief executive officer, assured the Mindoro congressman during a recent meeting here of the full benefits of geothermal power once the new plant is operational.  He explained the 20-MW geothermal plant would provide base-load capacity with as much as 90 percent availability.  Once the Montelago plant is operational, Wilde claimed it would be a big factor in providing a reliable and secure source of power and in stabilizing retail electricity rates.  The generation component of overall power cost is normally the highest, and even more so in the island grids.

The island currently  gets its power from the Oriental Mindoro Electric Cooperative, Inc. (Ormeco) which is barely able to meet the growing needs of a booming island. Recently, Ormeco signed a 48-MW supply contract for wind power. Geothermal power is expected to balance out Ormeco’s generation mix.

De Wilde said they are confident that the addition of geothermal power into the province’s present mix of electricity sources would have a stabilizing effect on the grid.  The geothermal base load is best suited for an island grid’s shift from bunker fuel to renewables, because it is not seasonal and has higher availability.  “The stability or reliability that investors will seek can be provided by geothermal power,” he added.

Situated on the so-called ring of fire, the country has vast geothermal potentials.

CEC, together with its technical and financial partners, is one of many companies and groups identifying and developing geothermal steam fields.  Other than the Montelago project, CEC is also developing other energy projects in Biliran province and Negros Island.