Solar power projects for Cebu await DOE service contracts

CEBU, Philippines - There are at least six applications for solar power projects in Cebu pending with the Department of Energy.

Latest DOE data showed that these solar power projects are proposed to be located in Consolacion town, Toledo City, towns of Borbon and Sogod, Cebu City and municipality of Medellin; and another project will cover the towns of Pinamungajan, Aloguinsan, Barili and Sibonga, and Carcar City.

Based on the data, these projects are to generate 130.90 megawatts (MW) in power, although the generating capacities of two projects are not indicated.

As of May, solar power plants ranked second in terms of the rated capacity of committed power projects for the Visayas grid, DOE data showed.

The expected capacity of these committed solar power projects is 295.15 MW.

As of May, Visayas has at least 15 committed power projects expected to generate additional 805.95 MW of power for the Visayas grid through 2019.

It can be recalled that last May, publicly listed MRC Allied Inc. disclosed that its subsidiary Menlo Renewable Energy Corp. was granted by the DOE a service contract for the development of a 60-MW solar power plant in Naga in southern Cebu.

Menlo is to put up the solar plant within the 160-hectare industry estate of MRC in Naga.

Other solar projects that were previously granted service contracts by the DOE were the 60-MW Toledo solar power project of First Toledo Solar Energy Corp. (formerly SunAsia Energy Inc.) in the southwest; and Bogo solar power project in the north, based on DOE data.

Meanwhile, as of yesterday, Visayas' power demand reached a peak of 1,348 MW and its capacity stood at 2,025 MW, leaving a reserve of 677 MW, according to the daily outlook of the National Grid Corp. of the Philippines.

Privatized

The Philippine power industry has been driven by private investors since the Electric Power Industry Reform Act (EPIRA) of 2001 was passed.

The 15-year-old EPIRA law has privatized power generation, transmission and distribution in the country to provide stable electricity supply.

EPIRA was made into law to restructure the power sector by privatizing the assets of state-owned National Power Corp. hopefully to bring down utility prices but unfortunately, the Philippines has still one of the highest power rates in Southeast Asia.  (FREEMAN)