MANILA, Philippines - Belgian firm Enfinity S.A. is spending P2 billion to install the 28.6-megawatt peak (MWp) Digos solar farm project in Davao del Sur. The project is expected to start operations in February next year ahead of the critical summer months in the Mindanao grid.
The company said the solar project would be a valuable capacity addition that can help plug generation deficiency in Mindanao grid, especially with threats of El Niño phenomenon extending next year that can de-rate hydropower generation in the region.
The Digos solar farm is now advancing to full construction phase following the issuance of “notice to proceed” to Sterling and Wilson of India as the international engineering, procurement and construction (EPC) contractor and Meralco Industrial Engineering Services Corp. (Miescor) as the local contractor.
The utility-scale solar plant will be equipped with photovoltaic (PV) panels to be supplied by Hanwha of South Korea.
“We are in discussions with electric cooperatives in Mindanao to supply power through long-term power purchase agreements on the Phase 2 and other projects,”Enfinity Asia Pacific Holdings Ltd. business development director William Ruccius said.
For Phase 1, Enfinity said about 20 percent of expense component had been earmarked for local elements like civil works, concrete and other materials as well as wages.
Ruccius emphasized the competitive value proposition that solar power can now provide for Mindanao grid’s need for peaking power, a cheaper cost option compared to the traditional source which had been generally diesel plants.
“Solar is a low-cost solution to peaking power today and as the cost continues to come down in the near future, it will take a bigger share of the generation load,” he said.