Company that will pursue geothermal project in Mindoro Island adds capital stock to P500M
POSTED: Monday, June 9th, 2014
CALAPAN CITY – The power company that is set to undergo the $180-million, 40-megawatt geothermal power plant project in Naujan, Oriental Mindoro, has just obtained the approval of the Securities and Exchange Commission (SEC) to raise its capital stock to P500 million to boost the company’s resolve to complete the said undertaking.
The said geothermal project, a first of such kind in the whole Mindoro Island, is envisioned to add additional supply to the power needs of both Oriental and Occidental Mindoro provinces.
In a press statement, Emerging Power Inc. announced the SEC approval for additional capital will boost the company’s position to complete the Montelago geothermal power plant projects in Barangays Montelago, Montemayor and Melgar B in Naujan town in Oriental Mindoro.
Dennis Zamora, Emerging Power chief executive, stated their company “affirms our commitment to the people of Mindoro and the rest of the country by seeing to it that we will establish and operate the Montelago geothermal power plant, and will deliver on our resolve to offer green energy at a lower rate.”
The company recently signed power supply agreements with electric cooperatives in Oriental Mindoro and Occidental Mindoro. Earlier, the Department of Energy (DOE) also granted Emerging Power a geothermal renewable energy service contract.
The company expects to start drilling operations by the third quarter and plans to start providing electricity to the two electricity cooperatives by mid-2016.
Oriental Mindoro 2nd district Congressman Reynaldo V. Umali, the House of Representatives’ energy committee chairman, said “EPI’s move to energize the entire island with geothermal energy will help make Mindoro the green capital of the Philippines.”
For her part, Occidental Mindoro Rep. Josephine Ramirez-Sato expressed optimism over the project’s positive impact on her province. “I am confident that with the advent of sustained and stable power generated from a renewable energy source such as geothermal, Occidental Mindoro will finally be on its way to speedy progress,” Sato, also the former Occidental Mindoro governor, stated.
Umali said the project would reduce the cost of electricity in Mindoro from P11 per kilowatt-hour to just P6.58 per kilowatt-hour, a 40-percent rate reduction.
“What’s more, we will no longer need subsidy from the main grid. This means consumers from other parts of the country do not need to pay for that subsidy. This will also reduce their electric bill,” the congressman, brother of Oriental Mindoro Governor Alfonso V. Umali, Jr., said.
Gani Capaning, Emerging Power spokesman, said the 40-percent reduction in electricity bills would lead to P2.1 billion in savings for the people of Mindoro in four years.
“With this project, the people of Mindoro and the Philippines could be assured of a sustained supply of clean and affordable power, as opposed to power derived from such fossil fuels as coal and petroleum,” said Antonie de Wilde, Emerging Power chief technical adviser. (By JUANCHO R. MAHUSAY)