EDC Unit Seals Power Supply Agreement With Aklan, Iloilo Electric Cooperatives

Deal for clean power. L-R: FGES VP for Marketing Arman Lapus, AKELCO President Wayne Malilay, EDC President & COO Richard Tantoco; AKELCO General Manager Chito Peralta, ILECO 1 Board Member Francisco Toledo, Jr. , ILECO 1 President Atty. Lex Anthony Cris A. Colada, Richard Tantoco, and ILECO I General Manager Wilfred L. Billena

Green Core Geothermal, Inc. (GCGI), a subsidiary of geothermal leader Energy Development Corporation (EDC), signed 10-year power supply agreements with the Iloilo Electric Cooperative (ILECO 1) and Aklan Electric Cooperative (AKELCO).  Based on the contracts, GCGI will supply AKELCO with 18 MW for Y2010 and 10 MW from Y2011 to Y2020.  ILECO 1, on the other hand will be supplied with 3 MW from Y2010 to Y2012 and 18 MW from Y2012-Y2022.  Power will come from the 112.5-MW Tongonan 1 in Leyte and 192.5-MW Palinpinon plants in Negros Oriental which GCGI won in a bidding by PSALM last year.

“We’re very glad to have ILECO 1 and AKELCO as partners in delivering clean energy to Iloilo and Aklan.  EDC’s long-term contracts with these two cooperatives will support the growth needs of the two cooperatives with clean, reliable and affordable power.  Since the industry is leaning more towards clean energy, EDC, with its 34-year head start in the geothermal business, is well positioned to address the supply shortage in the Visayas grid,” EDC President and COO Richard Tantoco said.

AKELCO General Manager Chito Peralta likewise expressed satisfaction with the agreement.   “Getting power has always been a challenge for us because as you know, Aklan is located at the tip of the grid.  Now Green Core will be able to augment the power supply of the province and encourage more tourists to visit Boracay.”  AKELCO services 17 municipalities in Aklan and two municipalities in Antique.

Tantoco added that the pricing of indigenous renewable energy resource such as geothermal is independent of any indexation to movements in global energy indices. Hence, ILECO 1 General Manager Wilfred Billena is confident that the contracts “will also result in lower power rates for us in Iloilo.”  ILECO 1’s franchise areas cover 15 municipalities.