September 6, 2022 | Business World Online
DUPINGA Mini Hydro Corp. (DMHC) recently signed a deal to supply renewable power to an electric cooperative in Nueva Ecija.
DMHC, a co-developer of the 4.6-megawatt (MW) Dupinga mini hydropower project in Gabaldon, Nueva Ecija, will be working with Nueva Ecija Electric Cooperative II – Area 2 (NEECO II Area 2) under a power supply agreement (PSA), renewable energy company Alternergy Holdings Corp. announced on Monday.
DMHC will source the renewable power from the Dupinga project.
The company is a partnership between Alternergy, led by former Energy secretary Vicente S. Pérez, Jr., and Markham Resources Corp., a renewable energy company led by Francisco Tiu Laurel of the Frabelle group of companies.
“The signing of the PSA and its subsequent submission to the Energy Regulatory Commission (ERC) for approval is one of last milestones successfully achieved to date in the development of the Dupinga Project,” said DMHC Vice-President Annette M. Rafael in an e-mailed statement.
DMHC and NEECO II Area 2 are set to submit a joint application to the ERC for the approval of the PSA.
In July, Alternergy secured a P600-million funding from Development Bank of the Philippines (DBP) for the Dupinga project.
Ms. Rafael said that the PSA and the DBP funding will help the company reach its target to supply renewable power to NEECO II Area 2 by 2024.
“As a lifetime commitment to our member-consumer-owners, we need to stay consistent in providing efficient, reliable, and affordable electric services,” said Ramon de Vera, general manager of NEECO II Area 2.
The Dupinga project is expected to generate savings for the customers of NEECO II Area 2 by avoided transmission fees and no valued-added tax on the purchased power.
“As a renewable power supply with no fuel charges, power from the Dupinga project is competitively-priced against other power suppliers of NEECO II Area 2 which are mostly from coal power plants and are exposed to fuel price increases,” Alternergy said.
The electric cooperative provides energy to about 120,000 customers in eleven towns in Nueva Ecija.
Alternergy said that the Dupinga project will help the company reach its target of building 1,245 megawatts of renewable energy capacity in the next five years. — Ashley Erika O. Jose