Aboitiz Power to supply renewable energy to San Fernando Electric Light and Power Company
November 12, 2009 12:23 am
CITY OF SAN FERNANDO, Pampanga, Nov. 12 — The Aboitiz Power Renewables Inc. will supply renewable energy to San Fernando Electric Light and Power Company (SFELAPCO) for three years starting Dec. 26.
Cleanergy, the Aboitiz Power brand of clean and renewable energy, will be sourced from its Tiwi-Makban geothermal facilities in Albay and Laguna respectively and from Hedcor-Irisan hydroelectric plant in Benguet.
The contract signing between Aboitiz Power and SFELAPCO is in line with the Renewable Energy Act of 1998.
SFELAPCO is the first distribution utility that will buy 100 percent renewable energy in the Aboitiz Power
Under the contract, Aboitiz Power will initially supply 45 percent of renewable energy to SFELAPCO.
By Sept. 25, 2010, Aboitiz Power will supply 100 percent of renewable energy to SFELAPCO.
In the succeeding 27 months until September 25, 2012, Aboitiz Power will be SFELAPCO’s exclusive bilateral energy supplier.
SFELAPCO president Michael Escaler said that renewable energy is the most efficient source of electricity that will give benefit to its consumers in Floridablanca, Bacolor, Guagua, Lubao and Sto. Tomas towns.
Escaler said the renewable energy is cheaper because it is (value added tax) VAT exempted.
Well for two reasons, one is it will provide cheaper electricity for our consumers and SFELAPCO is very much concern about the environment, he said.
Escaler said that consumers will enjoy a 40-centavo reduction in rates charged on the average per kilowatt hour once the Aboitiz Power Renewables, Inc. starts supplying renewable energy to SFELAPCO.
“Consumers will start to feel low power rates by October 2010 when sourcing is already 100 percent,” he said.
Luis Miguel Aboitiz, senior vice president on trading and marketing of Aboitiz Power, said “energy from renewable sources is also effectively VAT zero-rated so power from these sources can be sold to distribution utilities at prices that are competitive with coal plants.”
Aside from private power firms, Aboitiz said that they will also offering the supply of renewable energy to cooperative power companies.
“We already talked to at least five of them, but it’s really a first come first served basis,” he said.
SFELAPCO is a privately-owned power distribution utility which has a total energy requirement average of 35 million kilowatt hours per month for its 80,000 residential, commercial and industrial customers. (PNA)