A UNIT of AES Philippines will supply the power requirements of eight electric cooperatives (ECs) in Ilocos and the Cordillera Administrative Region.
In a disclosure to the Philippine Stock Exchange (PSE), AES Philippines said its subsidiary Masinloc Power Partners Co. Ltd. (MPPCL) has bagged the contract to supply the baseload power requirements of eight electric cooperatives from the Region 1 Electric Cooperatives Association and the Cordillera Administrative Region Electric Cooperative Association (R1+CAR).
This developed after MPPCL was declared the lowest bidder in the joint competitive selection process.
Chrys Herrera, AES Philippines vice president commercial, said the below P4.00 per kilowatt hour (kWh) price discovered during this bid is the lowest for a new generation facility in the country.
“We thank the R1+CAR electric cooperatives for the opportunity to participate in this well-structured and transparent competitive selection process,” said Herrera.
MPPCL submitted the winning proposal to supply 106 megawatts (MW) from the expansion of the Masinloc power plant after a competitive bidding process was conducted from November 2014 up to April 2015.
Six other power generator proponents qualified for the bid.
MPPCL provided the lowest price on both a “base price” and “long-term levelized price” basis.
MPPCL will be supplying electricity to members of the two electric cooperative associations whose consumers are located in the provinces of Abra, Benguet, Ifugao, Kalinga-Apayao, and Mt. Province in the Cordillera Region and the provinces of Ilocos Norte, Ilocos Sur, La Union, and Pangasinan in the Ilocos Region.
The Power Supply Agreements are expected to be signed in June 2015.
“This will help ensure a steady supply of energy to provinces and local communities served by the two electric cooperative associations,” said Herrera.
Neeraj Bhat, AES Philippines managing director, said the company is committed to providing the nation with safe, reliable, and sustainable power.
“This win establishes our expansion project as the most competitive new capacity in the country, and we are pleased to provide this benefit to the R1+CAR customers,” he said.