Green Core extends Capiz power deal

MANILA, Philippines - Green Core Geothermal Inc. (GCGI), a subsidiary of Lopez-led Energy Development Corp. (EDC), has extended its power supply agreement (PSA) with Capiz Electric Cooperative Inc. (Capelco).

Both parties agreed to extend the 10-year existing contract signed in 2010 to December 2040. Both parties agreed on new power rates pursuant to the re-pricing provisions and market-based price structure in their original agreement.

Based on the amended PSA, Green Core reduced its price in 2015 by approximately P0.30 per kilowatt-hour, its president Richard Tantoco said.

“With power supply in Panay coming from imported fossil-fuel based sources, Green Core effectively helps Capelco minimize their risk from unpredictable foreign exchange rate fluctuations and volatile global fuel price movements. This is a major benefit for Capelco granted that, historically, coal price movements have swung wildly,” he said.

Aside from the price cut, Green Core also agreed to increase supply to 15 megawatts of power from the current 12 MW for one year starting September 2014 to September 2015.

This would go up further to 18 MW from September 2015 to December 2040.

Edgar Diaz, CAPELCO general manager, expressed satisfaction over the new agreement, saying that this would benefit the cooperatives’ member consumers.

“CAPELCO was very pleased with the results of the re-pricing endeavors with Green Core given that its benefits will be directly felt by our member consumers,” he said.

Green Core he said, has been a reliable power supplier, which offers very competitive rates.