Iloilo City residents will soon enjoy a stable source of clean energy with ultra bilyonaryo Enrique Razon-led More Electric and Power Corp. signing a 20-megawatt (MW) mid-merit supply from Energy Development Corp.
The five-year power supply deal, which starts on July 25, will come from EDC’s Unified Leyte Geothermal Power Plant, one of the company’s most extensive geothermal facilities.
MORE’s move to get power from the Lopez family’s EDC is a part of the distribution utility’s customer welfare-driven initiatives that aim to provide stability and reliability in supply and fixed power rates to its power consumers.
EDC submitted the lowest bid among the three participating generators during the competitive selection process conducted by MORE Power.
“Green power is not only reliable but also affordable. MORE Power gives priority to affordability of electricity, then having renewable energy in our portfolio. We are confident that this partnership with First Gen and EDC will give us both our priorities that will benefit our consumers in the long term. Especially now that global fuel prices are, and will continue to be volatile, having renewable energy in our portfolio will save our consumers from high electricity costs,” said MORE Power president and CEO Roel Castro.
“We thank MORE Power for this new partnership that will not only benefit both parties but will also help our country decarbonize and meet its target to reduce its carbon emissions,” said Marvin S. Bailon, VP and head of Business Development at EDC.
Apart from reducing its carbon footprint, MORE Power will also enjoy more affordable electricity rates; because of the value-added tax zero-rating on geothermal power generation and because geothermal fixed rates that are not indexed to any fuel commodities and foreign exchange.
MORE Power, a subsidiary of Prime Strategic Holdings Inc., holds a 25-year franchise to energize Iloilo City, which has around 87,000 consumers.
EDC has a total installed capacity of over 1,480 MW, which accounts for 20 percent of the country’s total installed RE capacity. Its 1,185.40-MW geothermal portfolio accounts for 62 percent of the country’s total capacity, making the Philippines the third largest geothermal producer in the world.