Consumers in Bohol might soon see a lowering of their electricity bill with the re-entry of geothermal energy in the island.
First Gen's 100% renewable energy arm, Energy Development Corporation (EDC), is set to sign a supply contract for around 50 megawatts of power to Bohol.
This was revealed by Erwin Magallanes, EDC corporate public relations department head of the Leyte Geothermal Facility, who said the distribution utilities in Bohol are set to sign the service supply contract.
"We would be supplying about 50 megawatts of clean energy to Bohol anytime soon," Magallanes said.
Power supply sourced from geothermal energy in Bohol would translate to lower energy costs compared to the more expensive power generated by coal or diesel.
With EDC's geothermal plants in Ormoc and Malitbog in Leyte, the power generation company would be supplying power to Bohol that is more stable in price.
The electric bill of fossil fuel-produced power includes the pass-on rate, which are the fuel costs incurred by the producer automatically passed on to consumers.
Power consumers have to cover the additional fees caused by the fluctuating prices of fossil fuel due to global factors.
Under the new supply contract with NGCP, the price is fixed for five years.
"This adds up to the power cost reflected in the consumer's monthly bills, whereas with geothermal energy sourced-out power, the price is fixed for the five years of contract," said Magallanes.
Bohol's distribution utilities are currently getting a huge amount of coal-generated power mixed with other sources from generation companies such as Cebu Energy Development Corp. and GN Power, which is supplying electricity from coal-fired plants plants Independent Electricity Market Operator of the Philippines, Janopol Hydroelectric Plant, and San Miguel Energy Corporation (hybrid).
Power supply procurement
According to the Department of Energy (DOE), Department Circular No. 2018-02-0003 prescribes the policy in the conduct of Competitive Selection Process (CSP) in the procurement of power supply by the distribution utilities.
DOE governs the power supply procurement processes of distribution utilities to their service areas.
Part of the CSP is the disclosure of the generation company that will supply the electricity requirements and its capacity to meet the power consumers' needs at any given time.
The DOE policy aims to ensure that distribution utilities follow transparency and technology neutrality in choosing the lowest possible cost and reliability of the energy service.
Renewable energy producer
With over 40 years of pioneering sustainable practices, EDC remains the Philippines' leading 100 percent renewable energy producer with an installed capacity of 1,480.19 megawatts.
This accounts for about 20 percent of the country's total installed renewable energy capacity. (RAHC/PIA7 Bohol)
Originally published on pia.gov.ph
