Aboitiz Power subsidiary to feed Davao City 100 MW more in 2015

Davao Light and Power Co., Mindanao’s largest distribution utility, has signed a power-supply agreement with Aboitiz Power Corp. subsidiary Therma South Inc. for an additional 100 megawatts (MW) to feed Davao City and neighboring areas by 1915.

 

“The combination of rapid economic growth in the Davao Light franchise area and the expected deteriorating supply from the National Power Corp. require us to act responsibly and secure this power now and ensure the power needs of Dabawenyos in the future,” Davao Light executive vice president and chief operating officer Arturo Milan said.

 

Milan and Aboitiz Power vice president for sales and marketing Roland Gaerlan signed the deal last October 25 in Davao City, the company said in a statement.

 

Therma South has committed to complete its 300-MW clean coal power plant in Davao City by June 2015, and to supply 100 MW to Davao Light, which has an estimated peak demand of 290 MW from more than 300,000 customers in the cities of Davao and Panabo as well as neighboring municipalities Carmen, Dujali, and Sto. Tomas. 

 

“Mindanao is facing a critical power shortage and it will only get worse as our demand for power is increasing. Therma South will deliver much needed power by 2015,” said Therma South chief operating officer Benjamin Cariaso Jr. said.

 

“The people of Davao have welcomed our investment and it is just right that they reap the benefits of the power that we will produce,” Cariaso added.

 

“This unprecedented economic growth in Davao City needs electric power and we in Davao Light will do our best that this power is delivered reliably and the progress of our city goes unhampered,” Milan said.

 

The power supply contract is subject to Energy Regulatory Commission approval, which will ensure that electricity rates under the transaction are fair and to the best interest of consumers.

 

Therma South claimed it has the latest circulating fluidized-bed technology that meets stringent government emission standards. — VS, GMA News