MANILA, Philippines - Renewable energy firm Emerging Power Inc. has signed a tripartite Universal Charge for Missionary Electrification (UCME) agreement with state-run National Power Corp. (Napocor) and two electric cooperatives (ECs) in Mindoro province.
Signed last Oct. 26, the agreement allows Napocor to provide appropriate UCME subsidy to EPI for its 40-megawatt (MW) geothermal power plant in Naujan, Oriental Mindoro, Emerging Power said in a statement.
The two electric cooperatives were Oriental Mindoro Electric Cooperative (Ormeco) and Occidental Mindoro Electric Cooperative (Omeco).
The UCME agreement is also a requirement precedent to the power supply agreement of EPI with Omeco and Ormeco.
EPI president Martin Antonio Zamora said the firm’s geothermal project would bring Mindoro towards energy independence.
“This UCME agreement is a testament that renewable energy is not only good for the environment, it is also friendly on the pocket. The island will be the poster boy for clean, reliable and cost-efficient energy,” Zamora, said.
Under the Electric Power Industry Reform Act (EPIRA) of 2001, is collected from end-users which will be used for the electrification of remote communities or areas not connected to the main transmission grid.
The 40-MW geothermal project is expected to deliver its first 10 MW by April 2017.
Being a renewable energy development, EPI said its geothermal project would not rely on international fuel prices, cutting down the cost of power generation in the island by half.