GNPower gets license as power aggregator

The Energy Regulatory Commission (ERC), the country’s power sector watchdog, has licensed GNPower Ltd. Co. (GNPower) as wholesale aggregator (WA).

“The entry of GNPower in the roster of WAs is very encouraging since it will promote competition by providing more supply options to distribution utilities (DUs). Small electric cooperatives’ electricity consumers will benefit through reduced power costs,” ERC chairman Rodolfo B. Albano Jr. said.

GNPower will be competing with six other WAs earlier listed, namely: Trans-Asia Oil and Energy Development Corp., First Cabanatuan Ventures Corp., Aboitiz Energy Solutions Inc., First Gen Energy Solutions Inc., Angeles Power Inc., and iN2Power Inc.

GNPower, a joint venture between Nauru-based Power Partners Ltd. Co. and local firm PMR Holdings, was formed in January 2002 to develop, operate and own a power generation project and a transmission line in the Philippines.

The company also renders technical and consulting services in the areas of power generation, transmission line and related activities for the development and expansion of its business.

At present, GNPower is developing a 600-megawatt (MW) clean coal-fired power plant near the town of Mariveles in Bataan with planned commercial operations in 2011.

The facility’s expected total production is approximately 4,500 gigawatt-hours for the projected 50-year economic useful life.

As a wholesale aggregator, GNPower is authorized to engage in the consolidation of electric power demand of DUs for purchasing and reselling electricity on a group basis.

“Wholesale aggregation is one innovative concept which has emerged as the electric power industry shifts to a competitive structure. The ERC will pursue its mandate to the fullest to promote competition, encourage market development and ensure customer choice,” Albano said.

The power reform law provides that the ERC may authorize other similar entities to become eligible members, either directly or indirectly, of the wholesale electricity spot market (WESM).

GNPower has executed forward contracts, considered as bilateral power supply contracts, with 13 DUs which are scheduled to commence in 2011. The 13 DUs are also its prospective customers for its wholesale aggregation business.

GNPower targets to serve DUs as its captive market; contestable market customers as a retail electricity supplier and the wholesale electricity spot market (WESM). GNPower was the first recipient of the ERC’s retail electricity supplier (RES) license in July 2006.