First Gen Corp. subsidiary and renewable energy leader Energy Development Corp. won a contract to supply electricity to the island province of Bohol for 10 years starting 2024.
The joint competitive selection body of One Bohol Power Distribution Utilities awarded the power supply contract to EDC following a competitive selection process or bidding.
IBP is composed of three power distributors, including Bohol Light Co. Inc. and Bohol Electric Cooperative I and II.
The CSP requires a baseload power supply from a renewable energy source and an in-island backup power to ensure that Bohol would have a steady 24/7 supply of electricity even if it gets isolated from the grid in case of natural catastrophes such as typhoon Odette, a typhoon that severely impacted the province in late December 2021.
It said that among the bidders, only EDC met their requirements through the 50.83 megawatts of dependable power it committed to provide from the Unified Leyte Geothermal Power Plant.
EDC’s bid accompanied a backup power supply from an 85.12-MW diesel-fired power plant that it will construct in Bohol with a partner. Upon completion of the diesel power plant, it will be the first time Bohol province will have a backup source to keep its industry, tourism and residential sectors supplied with electricity even if the connection to Leyte island is cut.
EDC said geothermal energy provides uninterrupted baseload power all year round. 1BP and its power consumers would avoid about 312,355 to 524,757 tons of carbon dioxide instead of coal each year by using geothermal energy.
EDC said the generation charge for the Bohol contract would be about P4.70 per kilowatt-hour at the start of contract in January 2024. This would be below 1BP’s price cap of P5.4089 per kWH and the current blended generation rates of all three Bohol electric cooperatives.
1BP’s power rate from the PSAs with EDC is fixed and subject only to the Philippine consumer price index escalation despite having diesel for its backup power.
EDC owns over 1,480 MW of installed capacity, accounting for 20 percent of the country’s total installed renewable capacity. Its 1,184.6 MW of geothermal portfolio accounts for 62 percent of the country’s total installed geothermal capacity.
This put the Philippines on the map as the third largest geothermal producer in the world.