Suweco to invest P125 M for Catanduanes diesel plant

MANILA, Philippines - Renewable energy firm Sunwest Water and Electric Co. Inc. (Suweco) is investing P125 million for a diesel power plant in Catanduanes to help augment power supply in the province.

Catanduanes is currently experiencing up to 12-hour rotating power outages.

To help address the situation, Suweco and First Catanduanes Electric Cooperative Inc. (Ficelco) signed an agreement adding new capacity to augment the power firm’s hydropower plants in the island province.

Suweco chairman Elizaldy Co said the company would provide a 130 percent back-up hybrid power supply combining diesel, hydro and solar to the province.

This is done through an addendum to an existing power supply agreement between the two parties.

In June 2007, Suweco and Ficelco signed a power supply agreement to supply reliable and affordable electricity to Catanduanons and provide socially-related projects to uplift their socio-economic conditions.

However, for the past seven years, demand for power in the province steadily increased but supply remained constant.

As a result, Catanduanes is currently experiencing severe load sharing with 12-hour rotating brownouts, Ficelco president Greg Sarmiento said.

“The people of Catanduanes look forward to solving the perennial 12-hour brownouts and severe load sharing due to the unreliable and dwindling supply of power from other third-party suppliers in the island. Through this agreement, we, in Catanduanes, are now assured of sufficient power supply for the next 10 years,” Sarmiento said.

Co, for his part, said Suweco’s priority is to develop the renewable energy potentials in Catanduanes and other off-grid areas to address shortage of electricity supply, lower their power cost and more importantly, for government to minimize subsidies to these areas.

Aside from two operational mini-hydro power plants in Catanduanes with total capacity of 3.6 megawatts, Suweco recently commissioned its 0.6-MW hydropower plant in Sorsogon and is scheduled to commission additional capacity of of eight MW in Bugasong, Antique.

Suweco is a member of the Sunwest Group of Companies, a business conglomerate owned by Co, a Legazpi-based businessman.