Green Core secures ERC certificates

MANILA, Philippines - Green Core Geothermal Inc. (GCGI), the geothermal development arm of the Lopezes, has secured certificates of compliance (COCs) from the Energy Regulatory Commission (ERC).

The ERC said it has approved GCGI’s separate applications for its three-unit Tongonan Geothermal Power Plant (TGPP) and two seven-unit Palinpinon Geothermal Power Plant I & II (PGPP).

The plants were sold by the Power Sector Assets and Liabilities Management (PSALM) to GCGI following the former’s mandate under the Electric Power Industry Reform Act of 2001 (EPIRA) to privatize the assets of the National Power Corp. (Napocor).

Napocor had been issued two separate COCs for the TGPP and PPGP in November 2005. The full ownership and control of the TGPP and PGPP was granted to GCGI in October 2009.

The transfer and renaming of the COCs licensee were approved after the ERC ascertained GCGI’s conformity and capability to comply with the environmental, technical, and financial standards to operate generation facilities. 

The aggregate installed capacity for TGPP is 112.5 megawatts and 192.5 MW for PPGP. Both of the privatized plants are located in the Visayas region: TGPP in Lim-ao, Kananga, Leyte and PGPP in Valencia, Negros Oriental.

GCGI was incorporated and registered with the Securities and Exchange Commission in June 2009. The company is a wholly – owned subsidiary of First Luzon Geothermal Energy Corp. which in turn, is a wholly-owned unit of Energy Development Corp. (EDC). 

The ultimate parent company of EDC is Prime Terracota Holdings Corp. (PTHC).   

GCGI is primarily engaged in power generation, transmission, distribution, and other energy-related businesses.

Under ERC’s revised rules for the issuance of COCs, a generation facility whose owner has been previously issued a COC and which was then transferred or sold and the term of such COC has not expired need not secure for a new COC for the remainder of the term of the existing COC. 

The ERC, however, should be informed of the transfer of ownership within three days and that the new owner shall conform to and comply with all the obligations imposed on a generation company, including the submission of reportorial requirements. 

Moreover, the new owner should file an application with the ERC for an amendment of the COC if it desires to be named as the licensee under the COC.

“Geothermal plants are major sources of electricity in our country. In fact, the Philippines is the second largest producer of geothermal energy in the world after the United States,” ERC chairperson and CEO Zenaida Ducut said.

“The ERC is well aware that the production of energy, more particularly those run by indigenous resources, should not be disrupted. But the ERC should also make sure that responsibilities and accountabilities regarding the: protection of the environment, efficient technical operations of the plants and commercial and financial viabilities are properly established,” she said.