DOE okays 4 renewable energy deals

MANILA, Philippines - The Department of Energy (DOE) has approved four new renewable energy service contracts of Oriental Energy and Power Generation Corp., bringing to five the company’s mini hydro power generation portfolio.

A sister company of publicly-listed Oriental Peninsula Resources Group, Oriental Energy is set to develop the five mini hydro projects with a combined generation capacity of 55 megawatts (MW).

These service contracts include the 15MW Culaman Run off River Hydro Electric power project worth P2.2 billion located in Manolo Fortich, boundary of Bukidnon and Cagayan de Oro; three service contracts for the upper, middle and lower cascades of the Odiongan River in Odiongan, Misamis Oriental with total expected output of 22MW valued at P3.1 billion.

Oriental Energy earlier bagged the service contract to develop the P2.5-billion, 18MW Timbaban River mini hydro power plant in Madalag, Aklan. It has completed the feasibility study for the said project.

The Culaman Run off river hydro project will apply river flow diversion using a five-meter “weir” or intake structure that will have a height of five meters. 

This, according to Oriental Energy, is a beneficial move since the relatively low weir height of five meters will not cause submergence of lands in the surrounding community and environment.

Oriental Energy president Caroline Tanchay said the mini hydro power projects are in line with the Department of Energy’s efforts to address the country’s acute power supply problem without depending on expensive and pollutive fossil fuels.

She said the mini hydropower projects will contribute to the DoE’s goal of producing clean energy at the least cost. It will also help achieve power sufficiency especially in the Visayas and Mindanao power grid.

Last December, shareholders of Oriental Energy’s sister-firm — publicly-listed Oriental Peninsula Resources Group — approved the company’s plan to enter the power generation sector through a planned purchase of a 40 percent equity stake in Oriental Energy.

For this purpose, ORE shareholders approved the change in the firm’s primary purpose to include power generation and natural resources development.