ERC okays Negros co-op, San Carlos Bioenergy deal

MANILA, Philippines - The Energy Regulatory Commission (ERC) has approved the power supply agreement of San Carlos Bioenergy Inc. (SCBI), one of the pioneers in ethanol manufacturing in the country, with an electricity provider in Negros Occidental.

SCBI recently signed a supply contract with VMC Rural Electric Services Cooperative Inc. (VRESCO) for 2.4 megawatts (MW) to 4.8 MW in excess capacity.

The power that would be supplied to VRESCO will come from SCBI’s 8.3-MW cogeneration plant.

“The SCBI plant shall make available at least 2.4 megawatts of capacity to generate electricity for VRESCO,” SCBI said.

The ERC specifically gave SCBI to provide power to VRESCO for 30 years at a cost of P2.86 per kilowatthour (kwh), subject to regular adjustments based on inflation.

SCBI said the contract is in time for the expected power shortage in the Visayas grid and in anticipation of load growth in the VRESCO concession area.

At present, SCBI, aside from being the country’s first ethanol producer also runs an integrated cogeneration facility located in San Carlos City, Negros Occidental. 

SCBI’s facility will be powered by indigenous biomass resources, particularly bagasse, that are by-products from SCBI’s ethanol production. It will supply its ethanol produce to Petron Corp., the country’s largest oil refiner.

The balance of the plant’s power generating capacity is used by SCBI to run its ethanol plant.

VRESCO, on the other hand, distributes electricity to its franchise area that covers the cities of San Carlos, Victorias, Cadiz, Sagay and Escalante; and the municipalities of E.B. Magalona, Manapla, Toboso and Calatrava in Negros Occidental.

VRESCO currently sources its power supply from state-owned National Power Corp., which earlier signified to the utility that it cannot commit additional capacity because of the ongoing privatization of its plants.