Alternergy Holdings Corp., through its subsidiary Solana Solar Alpha Inc., has signed a 20-year power supply agreement (PSA) with Peninsula Electric Cooperative (PENELCO).
The PSA involves the generated capacity from Solana Solar’s 10-megawatt (MW) solar power project to be built in Hermosa, Bataan.
In a report by the Manila Bulletin, Alternergy president and Solana Solar director Gerry Magbanua said that the supply contract would allow PENELCO to have a long-lasting and green energy source for its power supply.
Magbanua said that PSA will reduce PENELCO’s dependence on power supply from fossil fuel, adding that the utility firm’s supply mix is dominated by coal supply “which is exposed to fuel price increases.”
PENELCO general manager Loreto Marcelino said that the Solana Solar Project is a “positive move” to diversify the electric cooperative’s supply sources and meet the requirements under the mandated Renewable Portfolio Standards.
The company is also developing a 4.6 MW mini-hydropower project in Gabaldon, Nueva Ecija.