More Electric and Power Corp., the new distribution utility in Iloilo City, said Wednesday it signed an interim power supply agreement with Aboitiz Power Corp.
Aboitiz Power under the deal will supply 10 megawatts, with an option to add 5 MW to More, an arrangement that is seen to benefit Iloilo residents and businesses in terms of stable and reliable power supply.
More Power, led by president and chief operating officer Roel Castro, and AboitizPower represented by AP Renewables Inc. president and chief operating officer Alexander Coo signed the one-year interim power supply agreement.
AP Renewables a unit of AboitizPower which operates the Tiwi and MakBan geothermal power plants, in Albay, Laguna and Batangas, will supply power to More Power.
“Our partnership with AP Renewables, Inc. is a testament to More Power’s corporate direction to go beyond and above compliance with what is required in the Renewable Energy Act by advocating renewable energy and eventually increasing its power supply from renewable sources,” Castro said.
Coo said Aboitiz Power’s portfolio of power plants all over the country made it an ideal partner for More Power and the people of Iloilo City.
“Geothermal power is definitely unique because it is renewable energy yet it can be baseload – meaning, it delivers power 24/7. For a growing metropolis like Iloilo City, this makes perfect sense. We are definitely excited to be partners with More Power and even more excited to be part of the growth of Iloilo City,” he said.
President Rodrigo Duterte in February this year signed a law granting More Power a 25-year power distribution franchise in Iloilo City.
Under the law, More Power is allowed to avail of emergency power supply through negotiated procurement, provided this will only be for a period of one year and the rates must not be higher than the latest Energy Regulatory Commission-approved generation tariff for the same or similar technologies in the area.
The agreement will take effect once More Power begins its operations.
More Power also signed an interim power supply agreement with Kepco SPC Power Corp. for 5 MW, with an option for another 5 MW of supply to Iloilo City.
The interim power supply agreement will also be for one year.
KSPC agreed to supply reliable power to Iloilo City at a lower rate than what is offered by the current supplier of the city.
“Kepco SPC is more than willing to assist More Power in its journey in giving Iloilo City secured, reliable and affordable power supply. [MORE] can always count on KSPC on these basic criteria of service,” KSPC president and chief executive Jong Ryoon Yoon said.
The power supply agreement will take effect once More Power commences operations as the distribution utility in Iloilo City.