July 04, 2022
First Gen-owned and renewable energy leader Energy Development Corporation (EDC) has been awarded the power supply contract that will enable the firm to supply electricity to the entire island of Bohol for ten years, from 2024 to 2033.
One Bohol Power Distribution Utilities’ Joint Competitive Selection Process (1BP DU JCSP) required a baseload power supply from a renewable energy source and an in-island backup power to ensure that Bohol will have a steady 24/7 supply of electricity even if it gets isolated from the grid amidst natural catastrophes such as typhoon Odette, a Category 5 typhoon that severely impacted the province in late December 2021.
Among all the bidders, 1BP declared that only EDC met their requirements through the 50-83 megawatts (MW) of dependable power that it has committed to providing from its Unified Leyte Geothermal Power Plant, with an accompanying backup power supply from an in-island 85.12MW diesel-fired power plant that EDC and its partner will be constructing in the province of Bohol. Upon completion of the diesel power plant, it will be the first time Bohol province will have a backup source to keep its industry, tourism, and residential sectors supplied with electricity even if the connection to Leyte island is cut.
Considered the Holy Grail among RE technologies, geothermal energy is the only one that provides uninterrupted baseload power, rain or shine, all year round, or what the leading RE firm refers to as Geo 24/7. Being powered by Geo 24/7 will enable 1BP and its power consumers to avoid about 312,355 to 524,757 tonnes of carbon dioxide in lieu of coal each year.
Moreover, EDC estimates its generation charge for this contract to be at approximately PhP4.7 per kWh once the contract commences in January 2024. This is not only below 1BP’s price cap of PhP5.4089 but is also well below the current blended generation rates of all three Bohol electric cooperatives. 1BP’s power rate from the PSAs with EDC is fixed and subject only to Philippine consumer price index (CPI) escalation despite having diesel for its backup power. The agreed rate will prevail even if EDC supplies 1BP’s requirements through the in-land diesel plant in instances of grid isolation.
EDC’s over 1,480MW total installed capacity accounts for 20% of the country’s total installed RE capacity, while its 1,184.6MW geothermal portfolio accounts for 62% of the country’s total installed geothermal capacity and has put the Philippines on the map as the 3rd largest geothermal producer in the world.