San Miguel Consolidated Power Corp. (SMCPC) has gotten a financial closing to begin commercial operations of its 2×150-megawatt (MW) power plant in Davao del Sur.
The Energy Regulatory Commission (ERC) said it granted interim relief to separed the power supply contract (PSC) applications filed by the SMCPC and five Mindanao electric cooperatives (ECs).
ERC spokesperson Floresinda Digal said the interim relief allows the parties involved to employ the proposed contract pending final resolution of their own applications.
The SMCPC can then obtain financial closing with other lenders since its PSCs have already been cleared.
The five ECs are Agusan del Sur Electric Cooperative Inc. (ASELCO), Cotabato Electric Cooperative Inc. (COTELCO), Davao del Sur Electric Cooperative Inc. (DASURECO), Surigao del Sur II Electric Cooperative Inc. (SURSECO II)
The five ECs are Cotabato Electric Cooperative Inc. (COTELCO), Surigao del Sur II Electric Cooperative Inc. (SURSECO II), Zamboanga City Electric Cooperative Inc. (ZAMCELCO), Davao del Sur Electric Cooperative Inc. (DASURECO), and Agusan del Sur Electric Cooperative Inc. (ASELCO).
The power supply contracts are valid for 10 years, with a contract capacity of 5 MW for SURSECO II, 10 MW each for ASELCO, COTELCO, and DASURECO, and 35 MW for ZAMELCO.
“The ERC’s decision to grant interim relief to SMCPC pertaining to its PSCs will help augment the deficient supply of power in Mindanao and ensure continuous power supply through the timely delivery of committed new capacities,” ERC chairman and CEO Jose Vicente B. Salazar said.
“A major consideration is that supply contracts provide the most reliable and least cost generation mix for the benefit of the DUs’ member-consumers,” the power regulator added.
The interim relief also allows the ECs to add the costs acquired for the supply into their generation charged. This will be sourced once the SMCPC begins commercial operations.
The company has a 2×150-MW circulating fluidized bed (CFB) coal-fired power plant in the works in Malita, Davao del Sur.