EPI, NPC ink subsidy agreement for two ECs in Mindoro

By Juzel L. Danganan

MANILA, Oct. 30 (PNA) — Renewable energy developer Emerging Power, Inc. (EPI) and state-owned National Power Corporation (NAPOCOR) signed the Universal Charge for Missionary Electrification (UCME) agreement with two electric cooperatives in Mindoro.

EPI said in a statement that the agreement allows NAPOCOR to pay EPI for its power production, which will be sourced from its 40-megawatt (MW) geothermal power plant in Naujan, Oriental Mindoro.

The firm will supply its capacity to Oriental Mindoro Electric Cooperative, Inc. (ORMECO) and Occidental Mindoro Electric Cooperative, Inc. (OMECO). The agreement is required by the two ECs.

The UCME fund is collected from grid-connected consumers and used for off-grid areas, which are mostly island provinces. However, the government will eventually slash and remove the subsidy.

The power firm added the UCME subsidy for Mindanao will slash the generation costs by half, as it explained its power plant will not rely on international fuel prices.

The company said it expects to deliver its first 10-MW capacity by April 2017.

EPI is majority owned by listed mining firm Nickel Asia Corp. (PNA)