Emerging Power gets SEC nod to hike capital

MANILA, Philippines - Filipino-owned emerging Power Inc. (EPI) obtained the green light from the Securities and Exchange Commission (SEC), to raise its authorized capital stock to P500 million.

The SEC approval came even as the company’s $180-million Montelago geothermal power plant project in Naujan, Oriental Mindoro has approached the drilling stage, said EPI chief executive officer Dennis Zamora.

He said the company has reaffirmed its commitment to complete the geothermal project in Barangay Montelago, Montemayor and Melgar B in Naujan.

 â€œWe affirm our commitment to the people of Mindoro and the rest of the country by seeing to it that we will establish and operate the Montelago geothermal power plant, and will deliver on our resolve to offer green energy at a lower rate,” Zamora said.

According to its plan, EPI’s plant will provide 40 megawatts of power to the province.

The company is eyeing to drill by the third quarter of this year and will start providing electricity by mid-2016.

EPI has also already signed Power Supply Agreements (PSAs) with Oriental Mindoro Electric Cooperative (ORMECO) and Occidental Mindoro Electric Cooperative (OMECO), a move that is seen to help address the power outages in the island.

Authorities have welcomed EPI’s investment in the province. Energy Secretary Carlos Jericho Petilla and Mindoro Rep. (2nd district, Oriental Mindoro) Rey Umali both said the project would help boost the province’s development.

 â€œEPI’s move to energize the entire island with geothermal energy will help make Mindoro the green capital of the Philippines,” Umali said. 

He said the province is aiming to become the renewable energy hub of the Philippines.

The project is expected to bring down the cost of electricity in Mindoro by 40 percent to only P6.58 per kilowatt-hour from P11 per kwh. 

“What’s more, we will no longer need subsidy from the main grid. This means consumers from other parts of the country do not need to pay for that subsidy. This will also reduce their electric bill,” Umali said, referring to the subsidy paid by electricity consumers nationwide for power provided to off-grid areas.

EPI spokesman Gani Capaning said the 40 percent reduction is expected to translate to P2.1 billion in electricity bill savings for the Mindoro residents.

Antonie de Wilde, EPI chief technical adviser said that with the project, “the people of Mindoro and the Philippines could be assured of a sustained supply of clean and affordable power opposed to power derived from such fossil fuels as coal and petroleum.”