In a statement last week, Palawan Electric Cooperative (Paleco) said it had signed a power supply agreement (PSA) with BPPGI allowing the latter to install a multi-feedstock biomass power plant at Barangay Tubtub in Brooke’s Point.
Under the 20-year contract, BPPGI will use biodegradable waste such as rice chaff, coconut shells and other similar items as feedstock to generate power in the facility.
Paleco noted that the PSA was exempted from the conduct of a competitive selection process under the Department of Energy’s Department Circular No. 2021-09-0030, which allows generating plants in the Luzon grid not exceeding 10 MW in capacity not to undergo competitive bidding if it would use indigenous energy resources within the franchise area of a distribution utility.
Paleco has yet to secure the Energy Regulatory Commission’s approval of the signed agreement. Commercial operations will begin once the PSA is approved, according to the electric cooperative.
Palawan currently relies on mostly diesel-fired power plants for electricity. A biomass plant, a renewable energy technology, will help lessen carbon dioxide emissions.
President Marcos earlier approved the P22-billion Palawan-Mindoro Interconnection Project, which would connect the two islands to the main Luzon grid and address intermittent supply in the provinces.
According to grid operator National Grid Corp. of the Philippines, the first phase of the project is estimated to cost P6.4 billion and will serve as the preparatory stage for the interconnection of Palawan to the main grid.