ERC okay sought for $5-M solar project

The International Finance Corp. (IFC) and Cagayan de Oro Power and Light Co. (Cepalco) have jointly sought an approval from the Energy Regulatory Commission (ERC) to engage in a $5-million solar power project.

Cepalco president Ramon Abaya, in an interview with The STAR, said the project is the first significant use of grid-connected PV in a developing country.

The power project, Abaya said, will be funded through IFC-Global Environment Facility (GEF).

Specifically, the project concept is being promoted by IFC and GEF as a demonstration of the environmental and economic benefits of the combined use of hydro and PV-based power (if PV prices eventually fall as independent experts predict).

Based on the plan, Cepalco, a private utility based on the island of Mindanao, will install a one megawatt (MW) on-grid field of photovolatid (PV) modules to maximize the efficiency of the 7 MW Bubunawan hydroelectric facility that has recently been put into service.

The proposed PV installation is being designed to meet peak power needs during the daytime and allow the dam, which has insufficient water flow, to store capacity for evening use.

The PV plant is expected to be constructed about five km south of the business district in the city of Cagayan de Oro, which is located within Cepalco’s distribution system, thus avoiding transmission and distribution losses.

According to certain studies, there are approximately 360,000 MW of potentially suitable hydro plants in high solar insolation regions in developing countries that could benefit from combined hydro/PV projects.