ERC okays 2 off-grid power projects

MANILA, Philippines - The Energy Regulatory Commission (ERC) has approved plans of two firms to start commercial power generation in off-grid areas in Palawan and Masbate.

In a statement, the ERC said it issued certificates of compliance (COC) to Cummins Sales and Services Philippines Inc. and Hastings Motor Corp. last month.

“The granting of COCs to Cummins Sales and Hastings’ plants in the missionary electrification areas supports the Electric Power Industry Reform Act’s (EPIRA) policy of ensuring the total electrification of the Philippines so that economic progress is realized in these far flung islands,” said ERC chairperson Zenaida G. Cruz-Ducut.

A COC is a requirement prior to starting commercial operations of a power generating plant.

Cummins Sales plans to operate a 920-kilowatt modular diesel power plant in Roxas, Palawan as a lessee under a contract with state-run National Power Corp.’s Small Power Utilities Group (SPUG).

The company, which is wholly-owned by Delaware-based Cummins International Finance Corp., registered with the Securities and Exchange Commission in August 2001.

Meanwhile, Hastings Motor plans to operate a four-unit, 2.81-megawatt modular diesel power plant in Ticao Island, Masbate.

Hastings Motor registered with corporate regulators in January 1992. It also holds a contract with Napocor’s SPUG.

SPUG is mandated by the EPIRA to undertake the electrification of remote villages or areas not connected to the main transmission grid in Luzon, Visayas and Mindanao.

“The ERC’s evaluation of the applications of Cummins Sales and Hastings Power ascertained these companies’ capabilities to adhere to technical and environmental standards set to operate power plants as prescribed under ERC’s revised rules for the issuance of COC for generation companies/facilities,” ERC said.

The COC is valid for five years or until February 2017 for these two plants. It must be renewed six months prior to expiration.

The two power plants are exempted from compliance with financial standards for locating in missionary electrification areas.

The power plants are also not subject to the 30 percent per island grid and 25-percent national grid market share limitations for operating in isolated distribution systems, the state-owned regulator said.