The Central Negros Electric Cooperative yesterday signed a power supply agreement for the purchase of cheap environment-friendly and renewable power from First Farmers Holding Corp. in Talisay City beginning October this year.

Andy Alvarez photo

CENECO president Roberto Montelibano, second from left, and FFHC vice president Rosendo Lopez shake hands after signing the contract in the presence  of Edwin Montemayor and Leo Echaus, right*

CENECO president Roberto Montelibano said the initial additional 5 megawatts from the First Farmers power plant in Dos Hermanas, Talisay, will help cushion the effects of the power shortage already being felt in the Visayas grid.

He said the CENECO coverage area experienced brownouts in the last three days because of a shortage of power supply ranging from 3 to 25 megawatts.

Even with the CENECO power purchase agreement with FFHC, Montelibano said the coop will still have to purchase 40 megawatts from KEPCO-Salcon Power Corp. in Cebu to meet increasing power needs of its coverage area.

He pointed out that the Northern Negros Geothermal Power Plant in Bago City so far is only producing 5 megawatts and no other alternative power sources have been offered.

If those opposing the KEPCO purchase have alternatives available to stave off a power shortage, we will welcome buying power from them, Mobtelibano said.

Rosendo Lopez, FFHC vice president, said his firm’s bagasse biomass co-generation power plant that will be producing renewable energy has the capacity to produce 21 megawatts, with a 15 MW export potential.

We will be producing cheap renewable energy from sugarcane waste so it will not affect food security since we will still be producing sugar, Lopez said.

The P500-million FFHC power plant is targeted for commissioning in September and for commercial operation by October 2008.

Under the contract inked yesterday FFHC committed to selling 5 megawatts of power to CENECO for two years from 2008 to 2010. The power supply from FFHC will be delivered to CENECO through its existing 69 KV transmission line in Talisay City.

FFHC will provide CENECO power at 1 percent less than the cost of power being supplied by the National Power Corp., which at current rates would be about 3 centavos less per kilowatt hour, Montelibano said.

CENECO will pay FFCHC a monthly electricity price per KWh lower than their weighted net average generation charges before prompt payment discount, FFHC general manger Leo Echaus said.

He said the FFHC bagasse bio-mass co-generation power plant is attached to the exiting First Farmers sugar mill and was 60 percent completed as of March 15

Because the plant produces renewable energy it will be entitled to carbon credits from the World Bank, FFHC corporate secretary Rafael Lizares said.

He urged government to provide more incentives to encourage all of the sugar mills on Negros Island to produce renewable energy for commercial use.

If all 10 sugar mills in the island produce power for sale using bagasse we will have no power shortage, Lizares said.

Montelibano said he is hoping FFHC can produce 15 MW for sale soon so it can provide CENECO with more than 5 MW, because the money paid for it will remain in the province.

He is also talking to another sugar mill to put up a similar project because the more power generators come in, the better, Montelibano said.

OTHER SOURCES

Montelibano said CENECO needs 100MW for its current peak requirement but the figure could reach 120MW after 2010.

“Partly we are getting power from National Power Corp., 30 megawatts. All the rest pasuwerte na kita (will depend on luck),” he said. “That’s why if the opposition (in the CENECO contract with KEPCO-Salcon) will only help we can solve this problem without attacking each other.”

He said the oppositors are against power from coal but the four power plants that will be built to supply power to Visayas are all coal-fired.

“They don’t want to coal but they want to have electricity,” the CENECO president said, adding, “My responsibility to the community is to supply (them) with power.”

Montelibano said the PNOC-Energy Development Corp. cannot also guarantee CENECO sufficient power supply because it hasn’t even produced the 49MW it is supposed to generate from its geothermal plant in Bago and Murcia.

“They have a letter to sell. My point is, where is it? Because you don’t even produce,” he said.

Montelibano said PNOC-EDC has offered to sell to CENECO because it has already cancelled its contracts with the electric cooperatives in Iloilo after its plant failed to produce its maximum capacity.

He said the opposition of the Church to the plan of PNOC-EDC to enter the buffer zone of the Mt. Kanlaon Natural Park also hampers the plant’s attempt to produce more power.

“Until such time they cannot dig additional wells. PNOC will never produce (additional power),” Montelibano said.*CPG/NLG

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