MANILA, Philippines - Mapalad Power Corp. of the Alcantara Group will install a 10-megawatt (MW) modular generating set (genset) in Zamboanga City until a long-term power supply deal comes in.
Mapalad Power has struck a power sales agreement (PSA) with Zamboanga City Electric Cooperative Inc. (Zamcelco) to supply power from leased modular diesel fired gensets as “an emergency and temporary solution to the power shortage” affecting the franchise area.
“Modular generating sets may be the most appropriate solution to the immediate need for power supply because they can be deployed and installed expediently,” the two parties said in its application with the Energy Regulatory Commission (ERC), the power regulator.
The PSA covers a period of six months, or until the start of the 50-MW power supply from Western Mindanao Power Corp. (WMPC), which is also part of the Alcantara Group.
Subject to regulatory approval, WMPC would start supplying 50-MW from its 100-MW bunker fired diesel power generating plant in Zamboanga City to Zamcelco for ten years starting early 2016.
Until then, the electric cooperative required to procure additional supply.
“The immediate implementation of the PSA will help alleviate the power outages in Zamcelco’s franchise area,” according to the joint application filed last June.
The PSA was cleared by the ERC in an order dated Sept. 1.
The ERC approved an upfront cost of P21.42 million, lower than the proposed upfront fee of P27.99 million for putting up the genset.
With the entry of the Mapalad Power genset, customers of Zamcelco will see an additional P0.686 per kilowatt hour (kWh) in their bills.