Energy Regulatory Commission issues certificate of compliance to Palawan Power

MANILA, Philippines - The Energy Regulatory Commission (ERC) has issued a certificate of compliance (COC) to Palawan Power Generation Inc. (PPGI) for the operation of a five-megawatt Bunker C-fired diesel power plant and one unit Blackstart diesel engine generator set with an installed capacity of 160 kilowatts.

The ERC said the COC was awarded to PPGI after a careful determination of its compliance with financial, technical, and environmental requirements. 

PPGI is a new independent power producer (IPP) registered with the Securities and Exchange Commission (SEC) on July 11, 2007. 

Its primary purpose is to engage in the business of power generation and sale of electricity. Its power plant was completed in December 2009, while testing and commissioning started in January 2010. The plant is located in Brgy. Tiniguiban, Puerto Princesa, Palawan. 

A newly installed 7.50-MVA power transformer will be the point of interconnection of the power plant to transmit power to Palawan Electric Cooperative Inc. (PALECO). The energy generation and sales by PPGI is covered by an ERC-approved power supply agreement with PALECO.  

All generation companies are required to secure a COC from the ERC before the commencement of their commercial operations as provided in the ERC’s guidelines.

The COC also involves approvals of other government agencies like the Department of Environment and Natural Resources (DENR). 

PPGI is exempted from the 30 percent and 25 percent market share limitations, it being in isolated grid that is not connected to the high voltage transmission system.

The ERC also took note of the trust account memorandum of agreement that PPGI entered with the Department of Energy (DOE) for the establishment of an electrification fund development and livelihood fund and reforestation, watershed management, health and/or environmental enhancement fund as part of the environmental standards.

“PPGI is a welcome addition to the power generation sector. Its participation in the electricity industry will augment the growing power requirements in Palawan, which is a top tourist destination in the country,” ERC chairperson Zenaida G. Cruz-Ducut said.