Green Core signs 10-year power supply deal with Capiz

MANILA, Philippines - Green Core Geothermal Inc. (GCGI), a subsidiary of Lopez-controlled Energy Development Corp. (EDC), has entered into a 10-year power supply agreement with Capiz province.

Under the agreement, GCGI will supply 12 megawatts of power from its geothermal plants in Leyte and Negros Oriental.

Specifically, GCGI will supply power to Capiz Electric Cooperative (Capelco) to energize 17 cities and municipalities in the province. 

“We’re very happy with this deal primarily because of the low rates of geothermal compared with other sources,” Capelco general manager Edgar Diaz said. “It’s good that we get 70 percent of our supply from GCGI’s geothermal plants and only 30 percent from more expensive sources.”

“We are now able to provide both our residential and industrial customers with clean, stable and affordable power,” he added.

EDC president and COO Richard Tantoco, for his part, reiterated that the pricing of indigenous renewable energy resource such as geothermal is not only independent of any indexation to movements in global energy indices but is also exempt from value-added tax.

“Hence, our rates are cheaper compared to those offered by coal and diesel-fired power plants,” Tantoco said.

He said this is also the reason cited by the other electric cooperatives that GCGI is supplying power to.

Early this year, GCGI sealed long-term power supply deals with Aklan Electric Cooperative (Akelco) and Iloilo Electric Cooperative (Ileco 1).

GCGI operates the 112.5-MW Tongonan geothermal plant in Leyte and the 192.5-MW Palinpinon geothermal plant in Negros Oriental.

GCGI’s parent company, EDC, is the largest producer of geothermal energy in the country, accounting for 62 percent of the total installed geothermal capacity in the country.

It also owns and operates the 122-MW Pantabangan-Masiway hydroelectric plants and has investments in wind energy projects in Ilocos and other provinces.